Time to Explore Electric?
Electrify your world
Taxation advantages of electric vehicles for business
Key Points for Sole Traders
- 100% First-Year Allowance: New electric cars qualify for a 100% first-year allowance, allowing you to deduct the full cost from your profits in the year of purchase.
- Second-hand vehicles are not eligible for the 100% first-year allowance. Private Use: If you use your vehicle for personal as well as business use, the amount of allowable costs you can claim will be reduced.
- Leasing: Leasing an EV does not offer the same capital allowance benefits but you can deduct monthly lease payments from your profit.
- VAT: You cannot claim VAT on the purchase of a car, but 50% of the VAT on leasing costs is recoverable.
- There is an adjustment for private use, the percentage of your mileage for private usage cannot be offset against tax.
Key Points for Limited Companies
- 100% First-Year Allowance: New electric cars qualify for a 100% first-year allowance, allowing you to deduct the full cost from your profits in the year of purchase.
- Second-hand vehicles do not qualify for the 100% first-year allowance. Leasing: You cannot claim capital allowances when leasing an EV, but monthly lease payments can be deducted from profits.
- VAT: Input VAT is not recoverable on the purchase of a car, but 50% of the VAT on leasing costs is recoverable.
- Benefit in Kind: When a company provides an electric car for private use, it creates a BIK that needs to be reported on form P11D
Employer and Employee Tax Comparison
Employer Cost Comparison
| Hyundai Kona N Line 65KW Electric Vehicle | VW T-ROC 1.5 TSI DSG R-LINE | |
| List Price | £36,935 | £36,660 |
| Benefit in Kind Value (BIK) | £1,108 | £12,098 |
| Employer NIC on BIK (15%) | £166 | £1,815 |
| First-Year Allowance (FYA) Tax Saving 25% of total EV cost. 20% writing down allowance on Petrol car | -£9,234 | -£1,833 |
| TOTAL EMPLOYER TAX BURDERN YR 1 | -£9,068 | -£18 |
Employer Cost Comparison
| Hyundai Kona N Line 65KW Electric Vehicle | VW T-ROC 1.5 TSI DSG R-LINE | |
| BIK Value | £36,935 | £36,660 |
| BIK Rate | 3% | 33% |
| Total Employee Cost @20% Income Tax | £222 | £2,420 |
| Total Employee Cost @40% Income Tax | £433 | £4,839 |
| Employee Monthly Cost @ 20% Income Tax | £18 | £202 |
| Employee Monthly Cost @ 40% Income Tax | £37 | £403 |
- Employer Savings: Opting for an EV results in a net tax saving of over £9000 in year 1
- Employee Savings: Employees benefit from a significantly lower tax charge, with a higher rate tax payer paying £37 Per Month for an EV versus £403 Per Month for a petrol vehicle. These figures highlight the substantial financial advantages of choosing electric vehicles for both employers and employees in the 2025/26 tax year.
Tax advantages for a business installing a home charger
At a cost of £995 inc VAT
| Incentive | Type | Value/Impact |
| 100% First-Year Allowance | Corporation tax relief | £207 Savings in Corporation Tax |
| Workplace Charging Scheme (WCS) | Government grant | £350 Government Grant Per Socket |
| VAT Reclaim | VAT refund | £165 Savings in VAT |
| No BIK on Employer-Provided Home Charger | Employee benefit relief | No charge to employee |
Total Saving £722 per charger meaning a net cost of only £272!
Benefit-in-Kind (BIK) Tax for Employees
- The BIK rate for fully electric company cars remains at 3% of the vehicle’s list price.
- This low rate offers significant tax savings compared to higher rates for petrol or diesel vehicles.
Benefit in Kind Tax Payable by Employees
| Monthly VIK Payable @20% | Monthly BIK Payable @40% | |
| Inster 01 49kWh | £12 | £23 |
| Kona N-Line 65 kWh | £18 | £37 |
| Ioniq 5 N-Line 84kWh | £24 | £47 |
| Ionic 6 Premium 77kWh RWD | £23 | £47 |
| VW Polo 1.0 R-Line DSG | £133 | £267 |
| VW T Roc 1.5 R-Line DSG | £202 | £403 |
| VW Tiguan R-Line DSG | £242 | £484 |
| VW Passatt 2.0 R-Line DSG | £311 | £622 |
Monthly Benefit in Kind Tax Payable for a Basic Rate Tax Payer
Discover Some of Our Award-Winning Vehicles
Electric
Why Hyundai EVs Lead the Charge
- Award-winning innovation
- Recognised global performance
- Sustainable, stylish design
- Leadership in electric mobility
Prices are based on Business Contract Hire with 6 months in advance, 10k miles per year and Exclude VAT
Hyundai INSTER - Compact and Acclaimed
INSTER WINS BIG
- 2025 World Electric Vehicle – World Car Awards
- Commended for value, innovation, and sustainability
Hyundai IONIQ 5 N - A Performance Icon
AWARD HIGHLIGHTS
- 2024 World Performance Car – World Car Awards
- 2024 EV of the Year – Car and Driver
- 2025 Performance Car of the Year – China Car of the Year
- 2024 Performance EV Under £100K – Road & Track
- 2025 Best Performance Car – MotorWeek
- 2025 Best Car to Buy – Motor Authority
Global Recognition
IONIQ 5
- 2022 World Car of the Year
- World Electric Vehicle of the Year
- World Car Design of the Year
IONIQ 6
- 2023 World Car of the Year
- World Electric Vehicle of the Year
- World Car Design of the Year
Best in Category - 2025 Awards
Prices from only £23,505
U.S. News & World Report
- Best Electric SUV – IONIQ 5
- Best Electric Car – IONIQ 6
- World Car Design of the Year
Recognised for:
- Safety
- Range
- User experience
- Overall value
| Monthly Rental | |
| Inster 01 49kWh | £279 |
| Kona N-Line 65 kWh | £335 |
| Ioniq 5 Advance 63kWh | £294 |
| Ionic 6 Premium 77kWh RWD | £374 |
Prices based on 6 Rentals in advance and exclude VAT 10K miles per annum.
Why Choose an EV?
Running Costs
Fuel Cost Savings
| Hyundai Kona N-Line 65 kWh | VW T-Roc R-Line 1.5 Tfsi DSG | |
| Miles per Year | 12000 | 12000 |
| Petrol Cost Per Litre | n/a | £1.32 |
| Electricity pence per kWh | 13.89 | n/a |
| Cost per Year | £343 | £1,613 |
| Cost per Month | £29 | £134 |
Based on average petrol cost Vs Home night time charging.
With a home charger its like having your petrol station in your driveway!
Always leave home with a full tank!
Or, for charging on the go:
Saving
£1270 per year
£105 per month
Charge myHyundai
Enjoy seamless e-mobility when charging on the go
Due to EVs having much fewer moving parts servicing costs are also significantly cheaper.
Experience the Future of Driving
Discover the Benefits of Electric Vehicles (EVs)
A smoother, Smarter Drive
Electric vehicles offer a unique driving experience that’s both exciting and effortless:
Instant Acceleration
Feel the power the moment you press the pedal. With no gears, EVs deliver instant torque for smooth, responsive performance.
Quiet & Peaceful
Enjoy the serenity of electric driving. With barely any engine noise, you’ll notice the little things—birds singing, tyres on the tarmac.
Regenerative Braking
Lift your foot off the accelerator and feel the car gently slow down. Regenerative braking recaptures energy and reduces wear on your brakes.
Stress-Free Driving
No gears. No engine vibration. Just seamless, comfortable travel—perfect for city journeys and motorway cruising alike.
Charge, Don’t Refuel
Plug in at home or at public charging stations. Rapid chargers can boost your battery in minutes, making life on the go even easier
A Cleaner Choice for the Planet
Driving electric doesn’t just feel good—it does good too:
Zero Tailpipe Emissions
EVs don’t emit carbon dioxide or harmful pollutants while driving, helping to reduce air pollution and slow climate change.
Cleaner Energy
Powering your car with renewable electricity—from solar, wind, or hydro—means fewer emissions and a lighter environmental footprint.
Greater Efficiency
Electric motors convert more energy into movement than traditional engines, meaning less waste and more miles per charge.
Healthier Air
Especially in towns and cities, EVs help cut smog and improve air quality—good news for everyone.
Enjoy the Best of Both Worlds
Not quite ready for a Full Electric Vehicle?
Consider a Plug-in Hybrid from Hyundai!
Switching to an electric vehicle (EV) is a great step towards reducing your carbon footprint, but we understand it’s not always the right choice for everyone just yet. Whether it’s concerns about range or access to charging infrastructure, if you’re not ready to go fully electric, a Plug-in Hybrid Electric Vehicle (PHEV) from Hyundai offers the perfect middle ground.
Hyundai’s range of PHEVs, like the Hyundai Tucson Plug-in Hybrid and Hyundai SANTA FE Plug-in Hybrid, are designed to give you the benefits of electric driving while still offering the flexibility of a petrol engine for longer journeys.
Electric for Short Trips
For most day-to-day driving, you can use electricity alone, saving fuel and reducing emissions.
Hybrid for Longer Journeys
If you’re heading out on a longer drive, the petrol engine kicks in, ensuring you can travel without worrying about range.
No Need for Frequent Charging
With the hybrid petrol engine available, you won’t need to worry about running out of charge during long trips.
Prices are based on Business Contract Hire with 6 months in advance, 10k miles per year and Exclude VAT
Tax Advantages of a Plug-in Hybrid
In addition to the environmental and driving benefits, owning a PHEV also offers some significant tax advantages:
Lower Benefit-in-Kind (BiK) Tax Rates
PHEVs are typically taxed at a lower rate than conventional petrol or diesel vehicles. Since they have lower CO2 emissions, they can attract lower BiK tax rates, which means lower taxes for both individuals and businesses.
Reduced Fuel Costs:
With the ability to charge your vehicle and use electric power for most local driving, you’ll save on fuel. The combination of electric and petrol means you’ll spend less overall on energy compared to conventional petrol or diesel cars.
Why Choose a Plug-in Hybrid from Hyundai?
Advanced Hybrid Technology
Hyundai’s PHEVs combine electric and petrol power to offer a smooth, efficient driving experience.
Flexibility
Drive in electric mode for local commutes and rely on petrol for longer trips—no need to worry about charging stations on every corner.
Lower Running Costs
Benefit from the reduced cost of fuel and enjoy the tax breaks associated with low-emission vehicles.
Environmental Benefits
Even when running on petrol, PHEVs emit less CO2 than traditional cars, contributing to cleaner air and a healthier environment.
If you’re not ready for a fully electric vehicle but still want to take advantage of tax savings and lower emissions, a Plug-in Hybrid from Hyundai is the ideal solution. Visit Cannon Hyundai Carrickfergus today, where our knowledgeable team will help you find the perfect PHEV for your needs and walk you through all the potential tax advantages.
Why Choose Cannon Hyundai Carrickfergus?
Trusted for Over 30 Years
Cannon Motors Hyundai has proudly served Carrickfergus and the surrounding community for more than three decades. As a family-run dealership, we’ve built our reputation on trust, reliability, and outstanding local service.
Electric Vehicle Specialists
Whether you’re making the switch to an electric vehicle for the first time or expanding your EV fleet, Cannon Hyundai offers expert advice and the full range of Hyundai electric vehicles — including the award-winning IONIQ 5, IONIQ 6, and KONA Electric.
EV Business Specialist Consultant
For local businesses, Cannon Hyundai provides direct access to an EV Business Specialist Consultant. We offer:
- Bespoke advice on Benefit-in-Kind (BiK) tax savings
- Fleet transition planning
- Charging solutions and total cost of ownership
- Ongoing business support for electric mobility
Friendly, Local Service
What sets Cannon Hyundai apart is our warm, approachable service tailored specifically for local customers. You’ll get to know the team — and we’ll get to know you. Whether you’re a first-time buyer or a long-standing client, you’ll receive honest advice, personal attention, and a relaxed, pressure-free experience.
Transparent EV Servicing & Support
Keep your EV running smoothly with Cannon Hyundai’s fixed-price servicing and expert aftercare:
Core Service: from £199
Major Service: from £299
We also offer EV battery health checks, software updates, and ongoing support tailored to electric vehicle needs.
New & Approved Used Hyundai Vehicles
Explore a wide range of Hyundai models, including new and approved used vehicles. From fully electric to efficient petrol hybrids, there's something to suit every budget.
Convenient Location, Flexible Hours
Address:
52-70 Belfast Road Carrickfergus BT38 8BT
Sales Hours:
Monday, Wednesday and Friday - 9am-5pm
Tuesday and Thursday - 9am-8pm
Saturday - 9:30am-1pm
Service Hours:
Monday-Friday - 8:30am-5:15pm
Saturday - 9:30am-1pm
Driving the Future - Locally
Whether you’re ready to go electric or simply want friendly advice from people who understand the local community, Cannon Hyundai Carrickfergus is your trusted EV partner.
Visit: www.cannonmotors.co.uk
Call or drop in today for a warm welcome and expert help.