Self assessment penalties

Regarding electric vehicles & tax allowances, if used for business, both self employed and Limited company businesses benefit from 100% first year capital allowances to help with their tax liability. This reduces to 18% of the cost price per year for used electric vehicles. Also you can claim 100% of the VAT for electric cars if used solely for business, when usually this is restricted to 50% for non electric cars.

The two best ways to reduce your tax bill is by either increasing your capital expenditure – buying machinery, vans, tools etc to help with future growth whilst obtaining the best capital allowances to reduce your tax. OR pensions – by paying into a company pension scheme saves up to 25% of the contribution in tax.