Published 02/06/2021
This information was true and accurate to the best of our knowledge at the time of writing. Find out more about grants and tax benefits for electric cars here.
With confirmation from the government that the sale of petrol and diesel vehicles will be banned from 2030, now could be the perfect time for your organisation to think about making the switch to electric vehicles.
Because it’s not just the environment that could benefit from going carbon-neutral – with government-funded grants and further savings on fuel, vehicle maintenance and road taxes up for grabs, not considering the switch to electric could just be leaving money on the table.
Here are 5 keys ways your organisation could benefit from electric vehicles.
1. You could become eligible for grants and tax benefits
The government has been tasked with bringing all greenhouse gas emissions to net zero by 2050 – which means they’re offering plenty of incentives to encourage business and organisations to make the switch, including eligibility for a number of government grants and tax benefits depending on the type of vehicle you choose.
Tax incentives
This isn’t an exhaustive list, but by going carbon-free you could receive discounts or exemptions on:
- Road tax - fully electric vehicles are currently exempt from paying VED, while hybrids can receive a reduced rate
- Fuel duty - fully electric vehicles don’t incur fuel duty for the electricity they use
- Capital allowances - you can also claim enhanced capital allowances with some low CO2 emission cars
Find out more about applicable tax exemptions on the government website here.
‘Benefit in Kind’ reductions
You may also have employees that receive a company car for personal use. This is called a Benefit in Kind, and your employees will be taxed on this perk in the same way they would on their normal salary.
However by switching your company cars to fully electric before the end of 2021, your employees could become eligible for the 1% Benefit in Kind tax rate. That’s in comparison to up to 23% BiK for any car with 100 g/km CO2!
Government grants
Alongside numerous tax exemptions, you could also access a number of government grants which are open to all registered businesses, charities and public sector organisation, including (but not limited to):
- Discounts on brand new low-emission vehicles via the government’s “Plug-in” grants, which provides up to £2,500 off the price of an electric car, up to £3,000 off the price of a small electric van or up to £6,000 off a large electric van.
- The Workplace Charging Scheme, which is a voucher-based programme providing support towards the up-front costs of the purchase and installation of electric vehicle charging points
2. It’ll cost you less on fuel and maintenance
Although electric vehicles can be more expensive to buy, they’re also considerably cheaper to run than petrol or diesel vehicles.
On average, an electric car costs around 4p per mile, in comparison to 9p per mile for a non-electric car – which equates to around £5 savings per 100 mile trip!
So while you may see a spike in your electricity bill due to the charging required to run your electric vehicles, you’re still likely to be spending significantly less than you would on fuel.
Zero emission-capable vehicles that meet the criteria are also eligible for a 100% discount on London’s Congestion Charge zones.
Combine these benefits with the reduced “whole life” costs for electric vehicles (including lower maintenance and fewer services), and your organisation could find itself in a significantly better financial position by the end of 2021.
3. They have less impact on the environment
Currently, road transport accounts for around 22% of all UK emissions, with more than 50% of those vehicles belongings to businesses and organisations.
With commercial organisations having such a huge impact on overall carbon emissions, it’s hardly surprising that the government are offering incentives to help them meet clean air targets.
Fully electric vehicles produce no direct emissions from the exhaust, making them far better for the environment than petrol or diesel cars. In fact, research has found that average “lifetime” emissions from electric cars are around 30% lower than petrol cars in the UK.
Not only are electric vehicles cleaner, they’re also much quieter – so local noise pollution can also be greatly reduced by organisations migrating over to electric vehicles.
4. They’re easy to charge
With the government’s Workplace Charging Scheme grant it’s now a lot more affordable to install charging points at your premises, with businesses and organisations able to access funding towards the up-front costs of the purchase and installation of electric vehicle charging points.
The world is also becoming a lot more electric-friendly generally, with rapid-network charging points available in convenient public locations that allow drivers to charge on the move, usually in 20-30 minutes – so employees don’t have to worry about being caught out on long journeys.
5. It could be good for your organisation’s reputation
With increasing attention on our global impact on the environment, there’s never been a better time go carbon-zero.
Not only could you make great cost savings by reducing your organisation’s carbon emissions, but doing so could be a simple way to show existing and prospective employees and service users that environmental issues are a priority.
Business owners can even use their eco-friendly status as a USP to prospective customers that are looking for low-impact alternatives to existing transport solutions.
Electric vehicle insurance
If your organisation uses any type of vehicle to carry out its standard activities, it’s your legal obligation to make sure staff, volunteers and service users are protected against any additional risks they may encounter on the road.
With over thirty years’ experience, we work with market-leading insurers to make sure you’re always getting the right cover at a competitive price - including cover for public and employers’ liability, business interruption, cyber liability, directors’ and officers’, risk management, buildings and contents, motor insurance and more.
Find out more about single or multiple charity vehicle insurance.
Find out more about business fleet and motor trade insurance.