Accelerated Capital Allowances with Electric Vehicles - Know Your Eligibility to EV Tax Incentives

You don't have to be an accountant to make sense of the savings you and your business can make!

  • Available on New 100% Electric Vehicles purchased by Ltd Company’s & Sole Traders
  • Eligible candidates can claim lower of purchase price or €24,000 against trading profits in year of purchase
  • Full Cap Allowance Tax saving accomplished in Year 1 of ownership
  • Conventional company vehicle takes 8 years to realise this saving
  • Half-Price Tolls
  • Cash saving on tax liability increased cash flow
  • Sole Traders eligible for €24,000 deduction against trade profits taxed at their effective rates
  • Charge stations also eligible for ACA, typical cost €1,500

To learn more about the BIK savings for both employees and employers, see our in-depth article here.

ACA Tax Saving Examples

ACA - Ltd Company EV Benefits Explained

The following example compares a Ltd company purchasing a Electric Vehicle and a conventional fossil fuel vehicle of similar size, both with a R.R.P of €28,000

Ltd CompanyElectric Vehicle Fossil Fuel Vehicle
Trading Profits€100,000 €100,000
Proportion of Deductible Vehicle Costs8/8 (100%) 1/8 (12.5%)
Deductible Vehicle Costs€24,000 €3,500
Deductible Charge Point€1,500 NA
Taxable Profits€74,500 €96,500
Tax Payable @ 12.5%€9,312 €12,063
Tax Saved€3,187€438

Over 7 times the tax saving compared to a fossil fuel vehicle in Year ONE!

ACA - Sole Trader EV Benefits Explained

The following examples compare a Sole Trader purchasing an Electric Vehicle and a conventional Fossil Fuel vehicle both with a R.R.P of €28,000. Sole Traders tax rate is 52%. (2019 tax rates and bands are assumed)

Sole TraderElectric VehicleFossil Fuel VehicleTax Saving
Trading Profits
€100,000 €100,000
Deductible Vehicle Costs€24,000 €3,000
Taxable Profits€76,000 €97,000

PAYE Payable€20,340 €28,740 €8,400
PRSI€3,040 €3,880 €840
USC€2,951 €4,631 €1,680
Total Tax Payable€26,331€37,251€10,920

Sole TraderElectric VehicleFossil Fuel VehicleTax Saving
Trading Profits
€50,000 €50,000
Deductible Vehicle Costs€24,000 €3,000
Taxable Profits€26,000 €47,000

PAYE Payable€2,200 €8,740 €6,540
PRSI€1,040 €1,880 €840
USC€493 €1,438 €945
Total Tax Payable€3,733€12,058€8,325

Who's Not Eligible?

  • Motor distributors
  • Motor Dealers
  • Car Hire Company’s
  • Vehicles are classed as stock in trade & not eligible for ACA
  • EV’s must be owned by the business
  • Lease & Hire arrangements do NOT count as ownership

(Please note - all figures above are estimates and not guaranteed. Please consult in full with a member of our sales team if you would like a more detailed breakdown)

Charge Points & Providing Electricity

The provision of electricity through company owned charge points to charge Employee electric vehicles will not give rise to a taxable benefit for the employee or director from 1 January 2018. This dramatically reduces fuel costs and is also applicable to non company owned EV’s. Effectively an employee can benefit from free fuel from their employer. An employer may cover the cost of charging provided to employees or indeed develop a revenue stream by installing charge points on site. This would also apply to retailers, car park companies etc and there is no licence required to sell electricity through a charge point

Windsor EV

Across our Natiowide Nissan Dealerships we stock the Nissan LEAF, the world and Ireland's leading EV. We also supply the eNV200, their fully electric version of the versatile NV200. While in our Renault Dealerships located in Galway and Airside, Swords, and Windsor MotorMall we stock the Renault ZOE,Renault Twizy, and the all-electric Kangoo ZE van.

The Nissan LEAF is Ireland's Best-Selling Electric Vehicle. In 2017 there were 257 Nissan LEAFs sold in Ireland. In 2018 that number skyrocketed to 789 units sold, an increase of 207%. In 2019, that number has risen yet again. By August 2019, the number of LEAF's sold was already 981 - a further increase of 44.9% over the same 8-month period in 2018. Of that impressive number, more than 75% of LEAFs in Ireland were sold by Windsor Nissan dealerships.

2019 is seeing further growth in Windsor's EV offering, with the new 62kWh Nissan LEAF now available for purchase. There are also new EVs coming down the pipeline including the new Opel eCorsa, and the new Peugeot 208e, as well as more exciting announcements to come.