Aside from the CSR ‘feel good’ factor of doing your bit for the environment, businesses can make significant savings by switching company cars and fleets to electric. EVs attract various tax breaks and grants, and you could even generate an additional income stream from your own electric car chargepoints.
If you’re not in a position to change up your fleet or company cars for EVs just yet, you can start by installing EV chargepoints. This will show your business’ commitment to greener fuel and encourage employees and visitors to make the switch to plug-in cars.
Exhaust fumes are one of the biggest sources of air pollution which is a significant risk to health. The Government is keen to tackle this by incentivising EV uptake.
Here’s a rundown of the benefits currently available for businesses using EVs:
- Low running costs: A full charge that can take you 100 miles or more can cost as little as £3.Travelling the same distance in a petrol or diesel car costs around four times as much
- No Vehicle Excise Duty (Road Tax) to pay
- Workplace Charge Scheme: Up to £500 available off the cost of installing a chargepoint at your workplace using an OLEV-approved installer such as RES
- Low employer Benefit in Kind and National Insurance Contributions on company cars
- Reduced company car tax payable by employees
- 100 per cent First Year Capital Allowance – allowing the whole cost of purchase to be offset against taxable profits in the first year of purchase (available until 2021)
- No fuel duty to pay
- You could choose to charge drivers to plug-in at your chargepoint and generate an additional income stream
- Exemption from London congestion charge
- Exemption from van benefit charge
- Grants: Your business could get 25 per cent (up to £4,500) off the price of a fully electric car and 20 per cent (up to £8,000) off the cost of buying an electric van. The Government has committed to this until at least 2020. For a list of cars and vans currently eligible see www.gov.uk/plug-in-car-van-grants
- Salary Sacrifice Schemes. These have been popular because the employer and employee didn’t have to pay tax on the portion of the salary being exchanged for a benefit such as a company car or phone. Last year the Government announced that this would stop and these schemes would be subject to the same tax as cash income. However ultra-low emission cars such as EVs are exempt from this change
- Fuel Benefit Charges do not apply to charging as electricity is not classed as a fuel
Let’s get started; talk to us about your business’ charging strategy today and how much you can by switching to electric cars.