THE ABSOLUTE BUSINESS FOR BUSINESS
It’s clear that switching to an electric vehicle benefits the planet, but does it make solid business sense? We believe it does, and for more reasons than you might think. So before we take a closer look at the main incentive schemes currently in place, here are just some of the benefits for introducing EVs into your business life.
Everyone pays less tax
It’s not often the taxman does you a kindness, but there’s a new benefit in place where companies can hire an electric car for an employee and the employee pays for it with a monthly deduction from their monthly payslip before national insurance and income tax is taken out. The benefit? Both the employee and the company save a considerable amount of money by paying less tax.
Actions speak louder
Taking Corporate Social Responsibility (CSR) seriously is essential for any business, and finding ways to tackle environmental challenges is forever high on the to-do-list. By switching to an all-electric company car fleet or encouraging employees to choose electric vehicles when travelling for business, you’ll show the world you’re serious about CSR and doing the right thing.
Attractive business offer
By embracing EVs before the 2035 ban you’ll not only prove you’re a forward-thinking business, you’ll make your employees feel valued as you’ll be helping them save money at a time when every penny counts. The fact they’ll get to enjoy a smoother, quieter commute won’t hurt either. It’s also a great way to attract the best new talent on the market.
Avoid congestion charges
It’s scary how quickly Clean Air Zone charges can add up for your non-EV drivers. Then of course there’s London’s Ultra Low Emission Zone and it’s hefty £12.50 a day cost. Switching to fully-electric vehicles will help you cut down on these costs, not to mention mountains of paperwork.
Flexibility to support business transition
Living a greener lifestyle is the goal for most of us, but we recognise that there are still barriers to switching to electric vehicles. Flexible vehicle usage – daily, weekly and monthly hire – can help businesses learn how EV’s work for their operations. Europcar solutions can help you understand the impact of zero emissions mobility in a practical, accessible and cost-efficient way.
Get support from the government
If you’re planning to install EV chargers at your offices, make sure you apply for the EV Infrastructure Grant. This government initiative covers 75% of the cost of the wider building work that’s needed to install multiple charge point sockets up to a maximum of £15,000.
KIND ON BOTTOM LINES
Whether it’s a company car, medical insurance or a gym membership that rarely gets used past January, most businesses offer some form of Benefit in Kind (BIK). Simply put, a BIK is a taxable, non-cash benefit an employee gets from their employer on top of their salary. So in terms of electric company cars, the BIK is effectively the amount of tax the member of staff must pay for having access to the car. Everything from fuel type, CO2 emissions and car list price are used to calculate the value of the BIK. The key one though is emissions, as the lower they are the lower the BIK rates are which is why going electric really adds up.
Without bombarding you with numbers, the BIK rate for EVs is currently set at 2%, increasing to 3% in 2025/2026, 4% in 2026/2027 and 5% in 2027/2028 . For petrol cars, that figure ranges from 16% to 37% depending on the emission levels of the car. It’s not hard to picture how much more money you’ll have left at the end of the month with an electric company car.
For a closer look at the figures, check out this handy breakdown.