Tax breaks for green cars?
Expenditure on green vehicles and related equipment shown in the list below qualifies for first year allowances (FYAs). This means a CAs tax deduction for 100% of the expenditure for the accounting period in which it’s incurred (rather than it being spread over many years). The following qualify if incurred by the 31 March/5 April 2025 deadline.
- new and unused zero-emission cars
- new and unused zero-emission goods vehicles, e.g. vans and lorries
- electric vehicle charging points
- gas refuelling equipment.
The annual investment allowance (AIA) provides similar tax relief, i.e. CAs for 100% of expenditure except for cars. However, the AIA is limited to expenditure of £1 million per year whereas there’s no limit for FYAs.
The AIA limit will reduce to £200,000 from 1 January 2022.
Keep a separate record of purchases that qualify so you can claim using any of your annual investment allowance.
Cost per lead (CPL)
To calculate CPL, you divide your marketing spend per marketing channel by the total number of new leads for a given timeframe. You’ll need to do this for each channel you’d like to measure.
Sales conversion rate
The conversion rate is the number of leads that turned into actual customers. It is calculated by taking the number of conversions divided by the number of leads.
Average client value
Calculate the average yearly revenue produced by a single client rather than the client lifetime value.
“Magic number” v CPL
Once you’ve got your sales conversion rate and the average client value, you multiply them together to come up with the “magic number”. You then need to compare the magic number with the CPL.
If the CPL is equal to or below the magic number then you’ve got a positive Return on investment (ROI) – the greater the difference the better.
Contactless limit to increase to £100
The new £100 spending limit for contactless card payments will begin from 15 October 2021.