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If there is one thing that benefitted from the COVID 19 lockdown it was the environment.

Less cars and other modes of transport made an appreciable impact.

Before lockdown the government had introduced incentives particularly relating to electric cars.

Some of these incentives differed in different parts of the UK, particularly in Scotland where more incentives are available and detailed below.

Electric Cars – 100% Allowances

The government in its drive for a greener environment provided what was known as enhanced capital allowances for electric cars. Cars whereby the CO2 emission is 50g/km or less.

These cars are entitled to 100% writing down allowance in the first year as opposed to 18% each year for non-compliant vehicles.

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An employer can provide Trivial Benefits to their employees and directors without incurring a tax charge. This means as an employer you can provide your staff, or your limited company can provide its staff and or directors with gifts of up to £50 each without a tax liability arising. Multiple £50 gifts can be given during the tax year.

 

If the benefit is provided to a director or other office holder of a family run company, the exemption is capped at £300 in the tax year. So in essence, HMRC allow tax relief on six £50 gifts each tax year.

 

From HMRCs perspective, a benefit is exempt from tax if all of the following conditions are satisfied:

 

  • The cost of providing the benefit does not exceed £50
  • The benefit is not cash or convertible into cash. Gift cards are OK as long as they are not exchangeable for cash
  • The employee or director is not entitled to the benefit as part of any contractual obligation
  • The benefit is not provided in recognition of particular services performed by the employee as part of their employment duties