Company vehicles have long been used by businesses to reward employees and also as a Directors perk.
Although for a number of years the company financial benefits have decreased year on year.
However, with various incentives available for purchasing Electric Vehicles there may be light at the end of the tunnel.
The first thing to say is that EV’s are not suitable for everyone right now, and this could be more so for those of us living and working in Cornwall & Devon.
However, the technology is continuing to develop at a rapid pace and manufacturers have a greater offering now, with more new models being rapidly launched over the next 2 years.
Business benefits of buying Electric Vehicles
Businesses investing in EV’s get a number of financial advantages over purchasing a conventional petrol or diesel vehicle;-
- 100% first year capital allowance for businesses purchasing EV’s – Allowing the whole cost of purchase to be offset against taxable profits in the first year.
- No fuel duty payable on electricity.
- Lower Employer National Insurance Contributions.
- Much Lower or even no company car tax for employees.
- No road tax.
- Many councils are offering free parking for EV’s.
- 100% discount from the London Congestion Charge.
- Lower running costs than Petrol or Diesel (typical savings of £150 for every 1000 miles you drive).
The incentives offered to owners of Electric Vehicles
To help EV’s become a better option the Government has set up a number of incentive schemes.
- Plug-in car grant – EV car buyers can receive a grant of up to £3500 from the Office of Low Emission Vehicles (OLEV). (This is through a grant the government gives to vehicle dealerships and manufacturers, and you do not need to do anything as the dealer will include the value of the grant in the vehicle’s price.)
- Plug-in van grant – Electric Van buyers can claim up to £8000 of the cost of an eligible van
For full list of eligible cars & vans click here
- Work Based Charging Scheme: This scheme allows businesses to claim 75% of the total cost of the installation, up to a maximum of £500 per socket and up to a maximum of 20 sockets per business (That’s £10000 per business!). The business can have charge points installed without owning an Electric Vehicle as they may require charge points for visitors, tenants or staff who have EV’s.
- Electric Vehicle Home Charge Scheme: This scheme allows domestic users to claim 75% of the total cost of the installation, up to a maximum of £500 per socket.
All of the above points to a much healthier payback than the conventional Petrol and Diesel vehicle.
Are EV’s to expensive at the moment?
Electric vehicles are becoming cheaper to purchase as the technology evolves is the honest answer.
Here are some examples of current models on the market to suit different budgets;-