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Electric Motor vehicles tax relief example

Electric Motor vehicles tax relief example

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
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