Example below of tax savings for a sole trader in first year for buying a new approved electric vehicle versus a fossil fuel vehicle.
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
| Electic vehicle versus Fossil Fuel Tax Savings | ||||||
| ( assuming standard 2019 tax credits and bands) | ||||||
| Electic | Fossil Fuel | Savings | ||||
| Trading profits | 50,000 | 50,000 | ||||
| Deductible vehicle costs | 24,000 | 3,000 | ||||
| Taxable profits | 26,000 | 47,000 | ||||
| Tax payable | 2,200 | 8,740 | -6,540 | |||
| PRSI payable | 1,040 | 1,880 | -840 | |||
| USC payable | 493 | 1,438 | -945 | |||
| Total Tax Saving | -8,325 | |||||