New government tax breaks mean that there has never been a better time to move your vehicle fleet to electric.
Now is the time to make the transition to EV and make the most of the financial advantages from the Super Deductions benefits just announced. These allow companies to cut their tax bill by up to 25p for every £1 they invest.
As the government says:
“These are designed to encourage companies to invest in productivity-enhancing plant and machinery assets that will help them grow, and to make those investments now.”
The Super Deductions cover EV chargers so firms can not only move to EV at less cost but also can harness free renewable energy to help charge their vehicles.
EV charger boost
As of April 1st companies investing in EV chargers (among a range of other qualifying plant and equipment) will be able to claim: a 130% super-deduction capital allowance.
The scheme will run until March 31st, 2023 so the pressure is on to implement without delay. Call us now on 0333 123 5464 to discuss the next steps for your move to EV.
The Super Deductions for EV chargers add to the big benefits already available for electric fleets, including the OZEV (Office for Zero Emissions Vehicles) grant scheme giving you £350 per socket and up to 40 chargers.
The grants also cover some costs if firms choose not to go for a full purchase-installation package from an approved supplier but buy their own EV chargers. They can claim for the installation, as long as the chargers meet minimum technical requirements.
EV tax benefits
Add to that the lower Benefits in Kind (BiK) rates for EV drivers compared with internal combustion engine (ICE) vehicles. The company-car tax on electric vehicles is 0% in the 2020-21 financial year, rising to just 1% for 2021-22 – a big saving and worth moving quickly to make the most of.
There’s no argument about the cost-effectiveness of EV and companies making the move early have seen 20-25% savings because their electric fleet vehicles are more efficient, use more affordable fuel and cost much less to maintain. By 2040, electric fleets should have a 15-25% lower total cost of ownership than those with ICE vehicles.
It’s also worth remembering that electricity is less expensive and the prices are more predictable than diesel or petrol.
We will also see the number EV models, both medium and heavy-duty, double over the next two years, so every need should be covered. Read more on top ten company vehicles here. And a combination of rapidly expanding public charging networks, ultra-fast charging, and smart chargepoint solutions, should make any range anxiety a distant memory.
The number of renewables tariffs continues to grow and many suppliers are providing the facility for companies to optimise charging times for the most efficient, least expensive use of energy. The smart charging solutions available mean that you can have peace of mind as well as optimising cost-savings.
While the costs of EV lifetime ownership are already cheaper than fossil-fuel vehicles, we’re seeing a rapid reduction in battery costs that should mean many EVs will have a similar price to ICE vehicles within four years.
Companies also benefit massively from the superior technology of EVs, with fewer moving parts that need much less maintenance, including no oil changes and practically no part replacements. That means fleet vehicles spend more time on the road and less time in the garage.
Read about the top ten electric vans available now.
The move to EV also helps companies with their sustainability goals and also to keep ahead of evolving government regulations around the electrification of the transport sector. Moving to electric fleets also gives a clear signal to customers and clients that you are actively working on environmental impacts.
EVs can reduce carbon emissions by more than 50% if the electricity used is from renewable sources. Going electric mean that firms can have the best of both worlds, with cost-effective and efficient fleets while demonstrating to green-aware consumers that the need to protect the planet is paramount.
Talk to us about your EV requirements:
- We are brand agnostic, so we’ll work with companies to find the right solutions for their needs, rather than just selling an own-brand charger. We only work with major manufacturers that meet our standards of quality and ongoing product support.
- Be aware of the new regulations being introduced that many well-known EV companies aren’t compliant with.
- We’re experienced in working with businesses on renewables and demand side reduction – as EV will increase the load on your electrics, so decreasing the other energy you’re using is key.
- Professional project management, putting the customers’ needs first.
- Finance solutions available to spread the cost.
- Warranty and maintenance packages available.