Electric Vehicles

5 Reasons that Electric Vehicles are a Top Choice for Company Fleets?

Ikea, Amazon and Uber are among the global brands which are driving towards making their vehicle fleets electric in the near future.

These household names form part of a global business trend which has seen numerous organisations make the switch to greener, more sustainable company vehicles in the past few years.

According to research from the Society of Motor Manufacturers and Traders (SMMT) around 58% of all electric cars on the road are registered to businesses rather than ‘people’.

And figures from HMRC also show that in the year after Benefit in Kind, tax rates were cut for zero emission vehicles, there was a 1,300% surge in fully electric company cars.

This increase in electric vehicle uptake demonstrates the significant benefits businesses are being offered to choose greener alternatives.

If you’re considering adding electric vehicles to your fleet, here’s just some of the reasons they could work for your business …

  1. Tax breaks

There are a number of tax incentives which benefit businesses looking to go electric.

One of the most significant is the enhanced capital allowance benefits for vehicles with lower C02 emissions. This could provide a significant tax relief to businesses purchasing electric vehicles, allowing them to claim 100% of an electric vehicle’s cost against their taxable profits in the same year.

Purely-electric cars are also free to tax creating instant savings for businesses which can be reinvested elsewhere.

  1. Company car tax

Staff whose employer provides them with an electric company car could also enjoy generous tax benefits.

The Government has reduced the rate of company car tax they must pay to ‘zero’ meaning employees will have nothing to pay when using an electric company vehicle.

Traditionally, the amount of company car tax employees pay is influenced by how often the employee uses the vehicle, their salary, its C02 emissions and its fuel type.

Thanks to this rate reduction employees using low-emission cars can make significant tax savings when travelling for work.

  1. Grants and discounts

Businesses could also be eligible to claim the plug in van grant, which could see up to £2,500 slashed from the purchase price of a low-emission vehicle, or £5,000 cut from the price of a larger vehicle.

  1. Lower running costs

Choosing electric vehicles could dramatically reduce the overall running costs across the entire business fleet.

Zero-emission vehicles do not need to be taxed, which immediately reduces cost for the organisation, there are no tailpipe emissions for an electric vehicle, and they are usually cheaper to maintain.

However, the biggest saving is in relation to fuel, which accounts for around 80% of fuel costs across a traditional fleet. Ongoing running costs for an electric fleet are significantly cheaper than petrol or diesel alternatives.

Electric vehicles cost between two to four pence per mile to run, according to statistics from the British Vehicle Rental and Leasing Association. While petrol and diesel vehicles are estimated to cost around 10 to 14 pence per mile to run – costing employers far more than electric options.

  1. Sustainability

The environmental benefits associated with choosing electric vehicles are one of the biggest and most important driving factors for those opting to make the switch.

According to statistics just one electric car on the road can save an average of 1.5 million grams of CO2.

As such, businesses adopting multiple electric cars or vans across their fleet could have a substantial impact on the overall volume of C02 emissions.

To find out more about purchasing electric vehicles for your business fleet visit our website or contact 0345 565 2075.