1. Significant tax savings
From April 2020, as a move by the government to encourage the switch to low emissions vehicles, the taxable benefit on company cars will change significantly. Hybrid plug in vehicles benefit in kind rates will drop further. As an example, a higher rate taxpayer will pay almost £5,000 tax per year on a BMW 320d, whereas a driver of a BMW 330e with a petrol engine and battery with up to 37 mile range will pay under £2,000. Fully electric vehicles take this further with benefit in kind rates of 0% for 2020/21, 1% for 2021/22 and 2% for 2022/23, meaning there will be very little tax to pay. Therefore by choosing an electric or hybrid company car, it is possible to significantly reduce your tax bill from 2020/21 onwards.
2. The range and battery life of electric cars is improving
Whilst older electric cars are limited to ranges below 100 miles, newer models can travel further under real world testing. With a mix of urban and motorway use, a BMW i3 120Ah can travel 145 miles, a Jaguar I-Pace 253 miles, and a Tesla Model 3 LR can travel a whopping 310 miles before needing a recharge. Electric vehicles perform in reverse to petrol/diesel vehicles, with range being extended greatly with only urban use. As an example, a BMW i3 120Ah could achieve closer to 200 miles with only urban use. Most manufacturers warrant the batteries for 5 to 8 years and up to 100,000 miles. Newer batteries suffer fewer problems with degradation and require many tens of thousands of miles to see any significant reduction in range. The batteries can also be recycled.
3. Charging is becoming easier, quicker, and incentivised!
Charging points are growing rapidly, both in number and the charging speed. While charging at home will be a convenient option for many, there will also be a need for fast charging stations at work. The average commute each day in the UK is now 16.7 miles. This equates to around 2 hours charge per day at home or just over 30 minutes at work using a fast charging point. You can apply for a £500 grant for home installation, and the same amount per socket installed in the workplace.
4. Cheaper running, servicing and repair costs
Costs to buy or lease an electric vehicle can be more expensive than comparable petrol or diesel models, but running costs and fuel are lower. Fuel costs can be cut by up to 80%. General servicing costs are lower for electric vehicles than for petrol or diesel models.
5. Enhanced driving experience
Electric cars are like-for-like generally quicker accelerating, especially at urban speeds. They are also quieter and usually have better standard features.
To find out more about the benefits of electric and hybrid company cars, register for our Electrify your Business event here.
