Business electric vehicles have grown in popularity in recent years due to their environmental benefits, lower operating costs, and a range of government incentives.
Read on to learn more about the pros and cons of having an electric vehicle for your business, as well as an overview of some of the best electric company cars and vans.
The pros and cons of electric cars and vans for businesses
Electric vehicles have many financial and environmental benefits for businesses. However, there are some cost and performance drawbacks that you need to consider.
What are the advantages?
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the running costs are much lower – Charging an EV could cost you a fraction of what you would normally spend on fuel
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there are clear benefits for the environment – According to EDF Energy, an electric car can save around 1.5 million grams of CO2
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There are a number of government incentives and tax benefits available to business owners who have electric vans and vehicles
What are the downsides?
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Most electric vans won’t be able to go as far as diesel or gasoline vehicles without having to be charged
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You will likely need to install a charging station at home or at workwhich is an additional cost to consider
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the initial cost of buying an electric car or van for your business is likely to be higher than buying a gasoline or diesel vehicle
Can companies get grants for electric cars and vans?
When you buy an electric vehicle for work, you can benefit from a government subsidy for low-emission vehicles.
The grant includes cars, vans, mopeds, motorcycles, trucks and taxis. It is available to dealers and manufacturers who will deduct the value of the grant from the price when purchasing an electric vehicle.
The maximum grant for cars is £ 2,500 while the maximum grant is £ 3,000 for small vans, £ 6,000 for large vans and £ 16,000 for trucks.
Travel Incentives for Electric Vehicle Owners
If you have to travel to urban areas for work, an electric van or car gives you a number of advantages:
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In London, EV owners don’t have to pay a congestion fee and save £ 11.50 per day (which could add up to around £ 200 per month).
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similar ULEZ programs are planned in Birmingham, Manchester, Bristol, Bath and Oxford
Electric car charging stations for businesses
One of the reasons some business owners are unsure whether to buy an electric van or a car is the cost and availability of charging points.
In response, the government launched an electric vehicle homecharge program that offers up to 75 percent of the cost of installing electric vehicle charging points in people’s homes.
There is also the Workplace Charging Scheme, which offers coupons for purchasing and installing an electric vehicle charging station in a workplace.
What are the tax benefits of an electric vehicle for your business?
If you buy a vehicle for your employees as a company car, they have to pay a company car tax and you have to pay 13.8 percent of the social security.
The non-cash income tax rate for employees with electric cars and vans was previously 16 percent. However, it was reduced to zero percent in April 2020, increased to one percent in April 2021 and to two percent from April 2022 to April 2025.
That means it is now much cheaper to have an electric company car. In addition, the non-cash tax rate for vehicles with higher pollutant emissions is over 30 percent, so that drivers of electric cars can achieve considerable savings.
Electric vehicle owners are also exempt from the following:
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Road tax
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Van benefit fee
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Fuel benefit fee
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Fuel tax
If you buy a business electric vehicle in person (rather than as a company car), you can claim 45p per mile as business travel expenses, although the cost of an electric vehicle is estimated at 4p per mile.
The environmental impact of electric business vehicles
The movement, which is encouraging more people to use electric cars, was spearheaded by the government, which announced its plans to ban sales of new gasoline and diesel cars in the UK by 2030.
Research by Ofgem suggests that more than 6.5 million households are planning to buy an electric or plug-in hybrid vehicle. The Department of Transport now estimates that there are currently around 500,000 extremely low-emission vehicles on the road in Great Britain.
In addition to the environmental benefits, there are many other reasons for entrepreneurs to switch to electric vehicles, such as: For example, government crackdown on gasoline and diesel vehicles, initiatives such as ULEZ and various tax incentives.
For customer-centric companies that operate in cities, it is a clear benefit that you are committed to reducing your carbon footprint.
And even if your company is not consumer-centric, e.g. For example, a driver who delivers finished goods, the amount of emissions saved each year on long journeys will likely be enough to take into account the advantages and disadvantages of electric propulsion.
What are the best electric vans and cars for business?
If you are thinking of buying an electric car or van for your business, there are many options to choose from. Here is an overview of six popular electric vans and cars for small businesses.
Three of the best electric vans
Nissan eNV200
This van has a “real” range of 100 miles before it needs to be charged, as well as a 40 kWh battery. It is recommended for business drivers short of miles in the city and could bring you in excess of £ 30,000.
Volkswagen ABT eTransporter
Manufactured by ABT and sold by Volkswagen, this van has an 82 kW battery and a stated range of 82 miles. It will likely cost more than £ 40,000 and is recommended for drivers who drive an average of 50 miles per day.
Mercedes-Benz eVito
This van allows drivers to slow down or roll while on the move, and has 93 miles of range and an 85 kW engine. It’s known for its great storage and lack of quick charge, and is likely to cost around £ 40,000 to buy new.
Three of the best electric cars
Nissan Leaf
This car has a range of 168 miles and takes up to 18 hours to fully charge. Known for its heated front seats and steering wheel, it costs just under £ 30,000 new.
Renault Zoe
With a charging time of 20 hours, this car benefits from a range of 179 miles. It has hill start assist and electronic stability control, which cost around £ 28,000 new.
Audi E-tron
Although it takes 42 hours to charge, this car offers a range of 259 miles. It also offers a rear view camera and quick acceleration. The new purchase costs at least 60,000 euros.
Should You Buy or Lease an Electric Vehicle for Business Use?
There are good reasons for both approaches. An electric car business lease reduces up-front costs and gives you a better chance to get on with technological developments such as: B. to keep up with longer loading times.
On the flip side, there are many financial incentives for purchasing an electric business vehicle and the running costs after purchasing it are likely to be very low.
Whichever way you choose, it is important that you do your research and think about the long-term impact this could have on your business.
Are you considering buying an electric vehicle for your company? Let us know in the comments below.
