Electric Car Helped Construction Director Slash Tax Bill

At AccounTax Zone, we work closely with construction business owners to find ways to reduce tax, stay compliant, and improve how they run their businesses day to day.

One of our clients — a director of a growing construction firm — came to us frustrated with the rising costs of running their diesel company car. On top of fuel and maintenance, they were paying a hefty Benefit in Kind (BIK) tax charge each year.

They weren’t aware there was a much smarter (and greener) way to handle this.

The Opportunity: Electric Cars and Major Tax Savings

We talked them through the benefits of switching to an electric vehicle (EV) through their company. Here’s what made the decision easy:

Benefit in Kind (BIK) tax on electric company cars is just 2% (compared to 25%+ for many petrol or diesel cars)
The company can claim 100% first-year allowances — meaning the full cost of the car can be written off against profits
No road tax, reduced running costs, and no congestion charges (if operating in zones like London)
It’s a forward-thinking move — aligned with government incentives for clean transport

The Result: Cleaner, Cheaper, and Smarter

Within a month, the company purchased a new electric vehicle through the business. Here’s what changed:

The director’s personal tax bill dropped significantly
The business got a corporation tax deduction in the same year
Ongoing fuel and maintenance costs were lower
The company now presents a greener image, which helps when bidding on large projects

Is It Right for Your Construction Business?

If you’re still running company vehicles on diesel or petrol, you’re probably overpaying on tax.
Electric vehicles aren’t just good for the environment — they can be a smart financial move too.

At AccounTax Zone, we help construction business owners make the most of every tax-saving opportunity — without the jargon or stress.

Thinking of switching? We’re happy to run the numbers and see what works for you. Book a meeting NOW!

You may also like to read: How a Group Structure Saved Tax for a Construction Firm