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Tax Efficient Savings That Also Help to Save Our Planet

Tax Efficient Savings That Also Help to Save Our Planet

There has been a lot of talk recently about global warming and the effects of car emissions on the state of our planet. This summer has been the joint hottest on record in the UK according to the Met Office, fuelling concerns about the impact of global warming. A Met Office spokesman said ‘The heatwave and lack of rainfall we experienced in summer 2018 were part of natural cycles in the weather which causes temperatures to be elevated far higher than normal. However, the risk of heatwaves is increasing due to greenhouse gas emissions.’

S4B have looked at some of the ways that you could save yourself money as well as helping to reduce emissions.

Electric Vehicles

Electric cars represent a cleaner, greener form of transport and if used as a company car there are tax efficiencies as well.
Here are some of the financial benefits of an electric car:

• 100% First Year Allowance for business owners available until April 2021
• Reduced Employer Class 1A National Insurance Contributions
• Salary sacrifice scheme available to business drivers
• Significant fuel savings compared to most petrol/diesel company cars
• Significantly lower Benefit in Kind taxation for company car drivers
• Zero rate Congestion Charge
• Grants towards home or workplace charge points

There are also Government grants available to reduce the price you pay for a brand new electric or hybrid vehicle. These grants are automatically deducted by the car dealer or manufacturer in the vehicle price. Click the link below to see the government website for more details on vehicles included in this scheme https://www.gov.uk/plug-in-car-van-grants.

Cycle to Work Scheme

The Cyclescheme is the UK’s leading cycle to work scheme. It allows employees to save money on a brand new bike or accessories and spread the cost of doing so. The government introduced the scheme as a way to promote healthier journeys to work and to help reduce environmental pollution.
The scheme basically allows employers to loan cycles and cyclists’ safety equipment to employees as a tax-free benefit. The benefit equates to a 25-39% tax saving to the employer and the equipment can be purchased from over 2,000 retailers nationwide.
For the employer, you gain a fitter, more energised employee. Plus for each employee that signs up you save up to 13.8% in National Insurance contributions.
At the end of the Hire Agreement, Cyclescheme contacts the employee to talk through their ownership options.
Click the link below to find out more details of the scheme and how much you might be entitled to. https://www.cyclescheme.co.uk/employers/about-the-scheme

The S4B team

S4B are a team of Chartered Accountants based in Maidenhead who pride themselves in saving you money as well as being ethically aware. If you want to see how we can help you, contact us on 01628 623444 or email us at info@s4b.co.uk

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