The quick reply to the query posed within the headline is… no. The announcement of a one-year zero-rate for Profit In Form on electrical automobiles is a welcome transfer from the Division of Finance, however the truth is that it’s a little bit of a paper tiger till we now have reasonably extra in the best way of stable particulars. Certainly some Irish automobile firms have actively criticised the transfer, saying that as a result of companies normally purchase their fleet automobiles on a 3 12 months rotation, it’s successfully a ineffective transfer.
The zero per cent BIK fee for electrical automobiles “is being launched for a interval of a 12 months and that there will probably be a complete evaluation of BIK on automobiles which is able to inform choices for the following funds” stated a spokesperson for the Income Commissioners. “From the first January 2018 to the 31st December 2018, the place an employer offers an worker or director with an electrical automobile or van, no taxable profit will come up for the worker or director. This exemption is proscribed to automobiles or vans which derive their motive energy solely from electrical energy, and no exemption is on the market in respect of hybrid automobiles or vans. The exemption is on the market in respect of each new and used automobiles and vans.”
Nissan has said that the Authorities’s new initiative is doomed to fail if it solely applies to the primary 12 months that somebody owns an EV. Nissan – which is the biggest vendor of electrical automobiles (EVs) in Eire – has referred to as on the Minister for Transport, Tourism and Sport, Shane Ross, T.D. to make clear the element of the brand new Authorities initiative as a matter of urgency. “The initiative wants to use for an EV possession cycle of not less than three years whether it is to face any likelihood of success,” stated James McCarthy, CEO of Nissan. “We’re delighted that the Authorities is prepared to take a progressive strategy to electro mobility however we must be assured that this initiative isn’t just window-dressing and that it has been absolutely thought by.”
Nissan additionally identified that it, as with different automobile makers, wants readability on future plans whether it is to pay money for ample portions of electrical automobiles from Nissan factories all over the world. If there’s a peak of demand in January for EVs, it might be that offer may grow to be restricted.
Volkswagen has voiced comparable issues. “We’re delighted to see the proposal of zero per cent BIK on electrical automobiles in 2018. This can be a nice sign of intent from the Authorities and can assist enterprise customers to make the swap to this thrilling new know-how. Nevertheless we want extra readability on how lengthy that is more likely to stay as most firm automobiles are purchased on three to 4 12 months offers,” stated Volkswagen Group Eire Managing Director Lars Himmer.
Now, there’s a potential double-advantage for enterprise user-choosers shopping for a second hand electrical automobile. With the zero-rate BIK being confirmed for used electrical automobiles in addition to new, you possibly can positively snap your self up a second hand discount EV and in addition take a 12 months off paying tax on it. Electrical automobile costs are exceptionally smooth, within the second hand market, as conservative used automobile patrons are very cautious of shopping for one thing with know-how which may very quickly be out of date. A BMW i3, for instance, the most effective EVs round, prices a whopping €36,000 (with none choices) new, however a three-year outdated one may be snapped up for as little as €20,000, and with very low mileage at that. On high of which, electrical automobiles want little or no upkeep as on the mechanical entrance… effectively, there isn’t actually a mechanical entrance in any respect. Electrical motors are easy and dependable, and want minimal upkeep to make sure their well being.
What of the batteries although? It’s a little bit of an open-ended query. Up to now, we’ve not seen an EV (or hybrid for that matter) with batteries which have floor completely to a halt, however clearly their effectiveness will decline over time. Automobile makers typically say that after the battery is all the way down to 80 per cent of its unique capability. it’s time for the knackers’ yard, however for many EVs that will probably be a way down the road — ten years’ regular use not less than.
So must you rush out and purchase one? As ever, it comes all the way down to your state of affairs. In the event you’re a low-miles driver, who normally solely drives on the town or on quick commutes, then sure, an affordable, used EV could possibly be simply the factor for you, and doubly so for 2018 should you can put it by your enterprise and flatline your BIK. As ever although, be sure to perform an intensive historical past test, as the very last thing you need is an electrical automobile with issues.
The remainder of us will nonetheless be right here, respiratory sighs of reduction that no additional tax burden was placed on ‘soiled’ diesels…