BIK for Electric Cars
Company car drivers choosing pure electric vehicles will pay no benefit in kind tax at all for the 2020/21 tax year, so if you’ve been thinking about making the switch for your fleet, this is a great time to take the plunge.
So, what are the benefits of an electric fleet?
Obviously one of the biggest barriers to investing in electric cars has been the cost. Not only the cost of buying the vehicles but also the cost of installing the infrastructure. However, the Government has committed to its Road to Zero transport strategy which wants all vehicles to be ultra-low emission by 2035. It is highly invested in this ambition and is currently offering various grants towards vehicles and infrastructure to encourage people to make the switch. There are no guarantees as to how long that funding will last, so it’s definitely something worth taking advantage of while it’s available. The Workplace Charging Scheme, for example, reduces the cost of installing electric vehicle charging points at your place of work for your fleet.
There are also tax incentives to help bring down the cost of EV ownership, which is great news if you are running a fleet of vehicles. For example, fully electric vehicles are not subject to Vehicle Excise Duty, and low emission vehicles (less than 75g/km CO2), pay less road tax in the first year. There are also other tax incentives, such as Benefit in Kind Duty, capital allowances, and salary sacrifice schemes.
Electricity is cheaper per mile than fuel and with ranges increasing all the time, this also means that vehicles can travel much greater distances between charges. Costs can be reduced even further by charging your fleet on your own premises using an Economy 7 tariff.
Electric vehicles operate much simpler systems, with only one moving part, which is the electric motor. This means there is much less that can go wrong, and part replacements should therefore be less expensive. Other features mean there is no fluid replacement required and less wear and tear on the main components.
Workplace electric vehicle charging quotes
While there is an initial investment involved, electric vehicles are already representing a return on that in terms of the reduced ongoing costs. There is of course also the benefit to the environment, which is what is driving the whole green agenda, and there will already be consumers and organisations out there who will look at these green credentials when choosing who to do business with. Having an electric fleet is currently something that can be used as a marketing tool. In any case, electric vehicles are an inevitability for your business and it’s no longer a case of deciding if to make the switch, but when.
To find out about grant eligibility and for a workplace chargepoint installation quote, get in touch with Electric Vehicle Car Charging Company.