We all know, the government is constantly finding new ways to tax us. As soon as a break is offered another tax is brought in. For individuals, this hurts our pockets, as a company it makes forward planning an ever changing lottery. Making a five-year business plan hard to form when you don’t know where the goal posts will be 12 months from now. There is one area where there are tax breaks and incentives that R&M feel will be here for quite some time and will very likely become more and more attractive as time goes by – that is electric cars.
The benefits of electric cars:
Since early 2001, road tax has been based upon vehicle emissions using Vehicle Excise Duty (VED) bands and measured on the New European Driving Cycle (NEDC). Officially registered electric cars and hybrids are categorised as type A (producing under 100g co2 per km). These are all zero-rated for road tax, potentially saving hundreds of pounds a year.
At the time of writing electric cars and hybrids are exempt from the London congestion charge. Currently standing at £11.50 per day, this could save a user over £2500 a year!
Electric and hybrid vehicles with emissions below 95g co2 per km are currently eligible for a huge 100% tax right down in year 1. This relief could save a company tens of thousands in tax. Depending on the vehicle, making their purchase is a clever way to reduce tax whilst creating multiple peripheral benefits for the business and the employee.
Company car tax (benefit in kind)
Due to varying engine sizes, co2 emissions and value, exact savings are hard to specify. However, rest assured that there are huge personal savings to be had by having an electric vehicle or hybrid as an alternative to your old company car. Check how much you can save here.
National insurance contributions
C1 NI contributions for company cars are based upon official emission statistics. Companies that provide their employees with low emission cars will pay reduced C1 NI contributions. The employee will also pay less tax.
Plug in car and van grants
The UK government currently offers grants to subsidise the purchase of these vehicles. Ranging from up to £5k for cars and £8k for vans, although this benefit is largely provided via the manufacturer.
There are other obvious benefits such as running costs. The average electric car will cost circa 3p a mile, based upon an average mileage of 12000 miles a year. An electric car could save the user around £960 in fuel every year.
It’s pretty clear from the research above that for both company and employee electric vehicles and plug-in hybrids are a great option for your business. This leads to the obvious question of how to make this work for you and your business.
In simple terms, you need to provide users with a practical way to refuel whilst at work. Thus making it as easy if not easier than a traditional vehicle. There are many solutions available to any potential electric vehicle owner. The solutions range from single user to multi-user electric car chargers, which can be a trickle or fast-charge EV chargers.
The key is deciding the right solution for the specific application. Delivering that solution cost effectively with the minimum disruption to day to day operations is where R&M Lighting come to the rescue. We can design, supply and install a complete electric vehicle charging solution. From the cable to the trench, to the installation, certification and maintenance of the electric car charging point and everything in between.
Call our friendly team now to discuss your options and get a free no obligation quote. Whatever and wherever your requirements please don’t hesitate to contact us on 01628 673 445 and we will be pleased to be of assistance.