Capital Allowance - Electric Charge Points: initial equality impact assessment
Published 4 November 2019
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This publication is available at https://www.gov.uk/government/publications/capital-allowance-electric-charge-points/capital-allowance-electric-charge-points-initial-equality-impact-assessment
Project objectives
This measure extends the First Year Allowance (FYA) for investment in electric charge points used for charging electric and hybrid vehicles. The current relief was due to expire in March 2019, but ministers are minded to extend it for 4 years (to March 2023).
When the measure was introduced in 2016, it was only for 2 years so HMRC didn’t ask for additional boxes on relevant tax returns. However, as the relief will now be available for 4 additional years, HMRC want to be able to effectively monitor the claims (in line with the recommendation from the National Audit Office).
For this, we require additional boxes on the Corporation Tax (CT) and Income Tax Self-Assessment (ITSA) returns. Similar to other capital allowances reliefs, we need a box for businesses to record their claim and the second box for any balancing charge event if they dispose of the asset.
As this is already part of the customer’s current process, the change should not create any additional users. The business will be able to claim the allowance and make any adjustment if it disposes of the asset and needs to make a balancing adjustment via the specific box in the tax return.
HMRC will be able to monitor the amount claimed or paid and capture/amend assessments as appropriate, and risk assess claims to ensure that they are compliant with the conditions of the relief and launch enquiries where required.
Customer groups affected
The customer groups that will be impacted by the change are:
- limited companies
- self-employed individuals
- tax agents
- IT/software developers
What customers will need to do
As a result of this change, customers will need to:
- enter the amount claimed in the relevant boxes on their tax returns - this will be for the amount claimed and any balancing charges they need to make
- access the service via Online (3rd Party Software/HMRC online digital portal) or where applicable, paper returns
- do this from April 2020 onwards until the allowance expires in April 2023
Assessing the impact
We assessed the equality impacts on all the protected characteristic groups in line with the Equality Act and Public Sector Equality Duty; and section 75 of the Northern Ireland Act.
Racial groups
Impact on customers
The Capital Allowance - Electric Charge Points (ECP) Population will be made up of diverse racial groups - there is no evidence to suggest any specific impacts on those customers within this protected characteristic group.
Disabled and not disabled
Impact on customers
No evidence, as above.
Gender
Impact on customers
No evidence, as above.
Gender reassignment
Impact on customers
No evidence, as above.
Sexual orientation
Impact on customers
No evidence, as above.
Age
Impact on customers
No evidence, as above.
Religion or belief
Impact on customers
No evidence, as above.
Pregnancy and maternity
Impact on customers
No evidence, as above.
Marriage and civil partnership
Impact on customers
No evidence, as above.
People with dependents and those without
Impact on customers
No evidence, as above.
Political opinion (for Northern Ireland only)
Impact on customers
No evidence, as above.
People who use different languages (Including Welsh language and British Sign Language)
Impact on customers
Yes - the project will consider the Welsh language at every stage of release. All guidance and communications to do with the changes will be available on GOV.UK in Welsh as per the existing Welsh language standards.
Employer Bulletins are to be translated into Welsh and include the information and messages for this project.
Online services and guidance are available in Welsh language. For those customers whose first language is not English, alternative arrangements can be made for friends and family to interpret or speak on their behalf when dealing with HMRC.
HMRC is working with groups such as RAD (Royal Association for Deaf people) to co-develop support material for people who do not use English as a first language (eg British Sign Language) to explain how to communicate with HMRC using digital services.
Opportunities to promote equalities
We have considered opportunities to promote equalities and good relations between people in each of the equality groups, but none have been identified within the scope of this project.