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Should You Buy an Electric Vehicle for Your Business?

News

12th February 2020

Should You Buy an Electric Vehicle for Your Business?

With the ban on selling new petrol, diesel and hybrid cars in the UK being brought forward by the Government to 2035, it’s now more important than ever for businesses to consider how they can do their bit to support the UK’s EV infrastructure.

To help you out, we’ve taken the time to look at the two key factors for business owners looking to purchase electric vehicles for business – cost and charge time.

DOES IT MAKE FINANCIAL SENSE FOR BUSINESS OWNERS TO BUY AN EV?

As well as doing your bit to save the planet, electric vehicles for business (EVs) make good financial sense when they are bought through your business – as a company car or as part of a fleet.

Benefit in Kind tax plays a big role in businesses purchasing EVs.

Company car tax is a tax on the Benefit in Kind (BiK) that an employee received through the provision of a car for their personal use. If an employee receives a company vehicle that is available for personal use, the employee must pay some tax on the benefit they receive from this.

BiK rates are based on the car’s P11D value (its list price including optional extras, VAT and delivery charges, minus the first-year registration fee and annual VED car tax) multiplied by the percentage banding the car sits in. Read more about BiK tax.

Because Benefit in Kind makes a significant difference on an individual’s monthly wage, it represents a good tool for the government to encourage the adoption of electric vehicles for business.

The current rates for BiK for full electric cars are:

2020/21 – no company car tax

2021/22 – 1% company car tax

2022/23 – 2% company car tax

For hybrid vehicles, it’s slightly different. They also attract a lower BiK but on a sliding scale which considers the CO2 emissions and the vehicle range (how many miles the car can do in-between charges). The cars with the most range attract a lower BiK rate.

Of course, in the short term EVs are more expensive than petrol or diesel alternatives, but the cost per mile is considerably less (up to a third of the price), meaning EVs can actually be more cost effective in the long term.

HOW LONG DOES IT TAKE TO CHARGE AN EV?

Many people ask, ‘How long does it take to charge an EV?’. With 3 different varieties of EV Chargepoints available (slow, fast and rapid), it completely varies on which charger you use and which EV you have.

A typical EV with 60kWh battery will take approx. 8 hours to recharge from empty to full with a 7kW (slow) charging point, but for many EVs you can add up to 60-200 miles of range in around 20-30 mins with a rapid charger (PodPoint).

WHERE CAN I CHARGE MY EV?

To answer the question, ‘Where can I charge my EV?’, we are starting to see more and more charging stations popping up in our local communities which is great to see as it makes it more viable for us all to switch.

It’s worth checking ZapMap to find the nearest charging point for you. This is a great tool if you have a client meeting as your car can be charging whilst you’re supporting your client.

SHOULD I CONSIDER INSTALLING AN EV CHARGER AT MY BUSINESS PREMISES?

If you run a business, there could be a lot of benefits to installing EV chargepoints in your business. 

With our EV charging trial, there are no purchase, rental or installation fees. We pay you for the electricity used and you can enjoy a discount off your business energy bills.

 

For more information please contact our team on 0115 975 8258 or email sales@yuenergy.co.uk.

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