Tax Benefits of driving an Electric Vehicle

The 2023 to 2027 extension of exemption allows businesses to provide electric cars to employees for private use with partial relief on the Benefit-in-Kind (BIK) charge, based on the car’s Original Market Value (OMV):

• For cars provided between 2023 and 2025: €35,000 reduction in OMV.
• For cars provided in 2026: €20,000 reduction.
• For cars provided in 2027: €10,000 reduction.

This reduces the BIK charge, with no charge if the OMV is reduced to nil. For 2023–2025, an additional €10,000 reduction is available.

Exemption for Charging Stations:

• If you provide an electric vehicle charging point on business premises for employees, no BIK charge applies, provided it’s available to all employees and directors.
• From 1 January 2025, a further exemption applies for charging points at employees’ or directors’ main residences, provided the company retains ownership of the charging point, and the employee or director uses an electric vehicle privately. This exemption doesn’t apply to hybrid electric vehicles