Many business owners are focusing on going green nowadays. Thinking about your carbon footprint not only helps the environment but also boosts your business's reputation and saves money in the long term.
While the UK government's plan to ban new petrol and diesel cars has been delayed until 2035, electric cars are becoming more popular. If you're unsure about electric vehicles (EVs) and their benefits for small businesses, this guide will help you understand if switching to EVs is right for your business.
Why businesses should consider electric vehicles?
There are several advantages to using EVs instead of petrol or diesel vehicles. Businesses can grow their fleet, save money on running costs, and avoid taxes like London's ULEZ or Congestion Charge.
One big advantage is that businesses can often claim a 100% first-year capital allowance on EV purchases. This means most companies can deduct the entire cost of an electric car or van from their taxable profits. While buying an electric vehicle involves a significant upfront cost, many business owners find that lower running and maintenance costs in the long term make it worthwhile.
Here are some common benefits of EVs:
Lower operating costs: EVs have fewer mechanical parts, which means lower maintenance and servicing costs compared to petrol or diesel vehicles.
Reduced fuel costs: Charging an EV at home is much cheaper than filling up a petrol or diesel vehicle. This can lead to substantial savings over time.
Tax advantages: EV owners enjoy lower Vehicle Excise Duty (VED) and may qualify for other tax incentives, such as reduced Benefit in Kind (BIK) tax for company cars.
Environmental benefits: Electric cars emit far less CO2 than petrol or diesel cars, helping to reduce air pollution, especially in urban areas..
Regulatory compliance: EVs are exempt from charges like ULEZ and Congestion Charge, making them ideal for driving in busy cities.
Incentives and subsidies: Electric car drivers may get perks like free parking in some areas, further cutting costs.
Brand image: Choosing EVs can improve your business's green credentials, showing customers that you care about the environment.
Efficiency and performance: EVs are more efficient than petrol or diesel cars, as they directly convert electricity into motion.
Are electric vehicles suitable for business fleets?
For businesses with multiple vehicles, switching to EVs can be cost-effective due to lower fuel and maintenance costs, as well as fewer restrictions in urban areas like London.
Can electric vehicles reduce a company's carbon footprint?
Yes, but it's essential to remember that while electric cars produce no emissions themselves, the electricity used to charge them often comes from fossil fuels. However, overall, EVs are much greener than traditional vehicles.
Are there government incentives available?
Yes, several schemes help small businesses transition to EVs, including grants for buying electric vehicles and incentives like exemptions from Congestion Charge and ULEZ fees.
Are there tax benefits to owning electric vehicles?
Yes, electric vehicle owners enjoy lower taxes, including reduced Benefit in Kind (BIK) tax rates for company cars, and exemptions from road tax and other charges like VED and fuel duty.
Electric vehicle offers for businesses
Ford E-Transit Trend
Price: £529per month 0% APR
Includes the Plug-In Vehicle Government Grant of £5,000 and a Dealer Contribution of £1,800
Get the offer here
Ford is offering a 72-hour test drive on the E-Transit
Choosing the right vehicle for your business is essential – that’s why Ford are offering an extended test drive throughout May. Experience their All-Electric E-Transit and discover how you could make the switch to electric.
Ford Transit Custom PHEV
Price: £515per month 0% APR
Includes a Dealer Contribution of £600 on selected models
Get the offer here
Nissan Primastar
Price: £469 per month
All prices exclude VAT
Get the offer here
See the latest van leasing offers here
