Is Choosing An Electric Vehicle For My Business/ Company a Good Option:
Are you looking for a way to elevate the financial benefits of your business? Cost-saving is your best answer. Getting an electric vehicle for your business/company will help you in saving energy resources which will ultimately result in benefiting cost control of the company. Getting an Electric vehicle for your business/ company is the best idea as it will help you in fulfilling your corporate and social responsibilities along with providing your company with financial benefits. Some of the perks that your company can enjoy by using electric vehicles/ cars are listed below:
- Exemption of taxes like company transport tax.
- Exemption in company’s vehicle and excise duty etc
- Exemption in Benefit in kind Tax for your company
- Saving repair costs for your company vehicles
- Saving operational cost for the company
- Cheaper transport for company employees
Most of the employees use to pay themselves for their cars that are being used for the company and ultimately the amount they spend becomes their post-taxed income. An employee gets 32.5% on the dividend by the director in a high rate tax-band.
Whereas, if the company pays for the car it will get CTR (Corporate Tax Relief) that leads to a little amount of Benefits in kind Tax which is quite lower than the 32.5% dividend tax.
An initial investment can result in future benefits for the company such as using electrical vehicles as an effective and efficient travel solution for the company. It would eliminate the fuel expenses as well as the high rate divided taxes.
Government's new policy (6th April 2020) gives relaxation on company car bills on using an electric company car. The BIK taxation from the year 2020-2023 is very low that helps the employees to get maximum pay.
The grants provided by the Government of the United Kingdom to the businesses/ companies that use electric vehicles i.e vans, cars, etc for their transport are remarkable. These grants facilitate the business holders in providing better facilities to the employees by enhancing the financial capabilities of the business. They also help in the reduction of the purchase price of the vehicle thus benefiting your company for its initial cost. This helps in reserving the capital allowance of your business. £3,000 reduction is granted provided that the vehicle has gaseous discharges (Carbon dioxide) of under 50g/km and can go in any event to 112km (70 miles) with no outflows by any means.
The batteries of the electric vehicles are designed by using renewable metals. The recycling of the material that is used to build up the batteries helps in reserving the energy resources. The use of cobalt, which is a rare metal found in the earth's crust is most obvious in Electric Vehicles. If you get an electric van/car for your company, the cost of conventional fuel resources like gasoline, etc will be saved as electricity used to recharge the batteries is cheaper in the United Kingdom. Furthermore, electric cars/vans provide more mileage than traditional vehicles, thus, reducing the transport cost for your business/ company.
The engines and other parts like motors of an electric vehicle/ car is designed by using parts that require low maintenance due to lesser movement. Lesser maintenance of the engines will help in cutting the maintenance and operational cost of your business.
Electric Vehicles serve the purpose of corporate and social responsibilities by saving the environment. The motto of Green earth pledged by every business can be achieved by using electric vehicles. The emission rates of chlorofluorocarbons that are produced by biofuels can be reduced by using electric cars/ vans as they use electricity as a fuel resource. This will help in creating a positive reputation for your company in saving the ecosystems and the environment. This will also benefit your company by getting rid of the emission zone charges resulting in cost reduction of your company.
