There are a number of environmental and financial benefits of electric company cars. As of April 2020, individuals in the UK with pure electric vehicles will pay zero company car tax, an announcement made recently by the UK government.
If you are planning to change your company car anytime soon, why not look into the benefits of a plug in electric or hybrid, saving yourself some money and benefitting the environment?
[bctt tweet=”As of April 2020, individuals in the UK with pure electric vehicles will pay zero company car tax, an announcement made recently by the UK government.” username=”smartgreenmoney”]
The Climate Argument
When it comes to climate change, we’ve all heard how our actions are contributing to the change in global temperature. Some believe climate change is a result of industrialisation. Others say it is a mere blip on the earth’s vast timeframe. No matter where you are in the world or what your belief, you’ve probably experienced some degree of change in the climate recently. From heatwaves across Europe to heavy rains, typhoons and flash flooding in Asia, it has been extraordinary.
Environmentalists such as the Extinction Rebellion and Greta Thunberg have been very active in bringing climate change to the political arena. They’ve achieved this empowering the general population to take part in campaigns. The global climate strikes and the Fridays for Future strikes are a few examples.
Now how does this relate to the company vehicle? If you are of the school of thought that industrialisation is the catalyst accelerating climate change then the car is definitely a part of this catalyst. Its emission of millions of tonnes of harmful pollutants into the atmosphere has not gone unnoticed. If you are not, then you should still consider switching to low emission vehicles for the financial benefit.
What is Climate Change action is the UK Government Planning?
Earlier this year, the UK parliament approved a motion to declare a climate emergency. It is set to ban petrol and diesel cars by 2040. London’s Low Emission Zone is expected to introduce stricter standards by October 2020. The standards will affect heavy vehicles, such as lorries, buses and coaches.
London Mayor Sadiq Khan has also decided to introduce an Ultra Low Emissions Zone, (ULEZ). This initiative will affect all sizes of vehicles as of October 2021 in London. The aim of the new ultra zone is to reduce emissions of harmful pollutants into the atmosphere in an attempt to improve the air quality and health of people living in and around city.
What is the Vehicle Manufacturing Industry Doing?
To combat the environmental impacts of cars, the vehicle manufacturing industry has spent millions on research and development programs to make cars more eco-friendly. The result? We’ve seen a surge in affordable and luxury plug in electric and hybrid cars on the market. Admittedly, some vehicle manufacturers were in the news for falsifying emissions testing results. Nonetheless, the new breed of vehicles is certainly better than what we’ve been driving.
With diesel cars being phased out, our reliance on petrol will start to reduce as we move to more eco-friendly cars. Electric charging and hybrid vehicles require little or no fuel and emit less pollutants. These ultra low emission vehicles (ULEV) are gradually making a presence on the roads.
The Environmental and Financial Benefits of Electric Company Cars
There are a number of environmental and financial benefits for investing in electric company cars. Whilst electric cars for personal use is on the rise, a number of organisations are opting for a fleet of electric vans.
Electric company cars are gaining popularity in the private sector. The announcement that individuals with pure electric models will pay zero company car tax for the year from April 2020, making the new breed of ELVs a very attractive proposition.
For most employees, the main reasons for switching to electric cars is to save on the ever rising cost of fuel and minimising environmental impacts. By installing shared charging points within company car parks, companies will save money and time refuelling.
Employees using company cars will also see a financial gain. I am not an accountant by any means, but I am aware that one of the criteria for tax on vehicles is based on CO2 emissions. Electric vehicles have little or no emissions, so this reduces the benefit in kind amount for the employee and also class 1a national insurance for the company.
If you are planning to change your company car anytime soon, why not look into the benefits of a plug in electric or hybrid – saving yourself some money and benefitting the environment? You could see a potential saving of £500 to £1500 per annum. This of course will depend on the car you choose. It’s always worth speaking to an expert in the field, such as an accountant, to gain more information on how the switch could benefit you and the company.
To finish off, your choice to move to an electric or hybrid company car will contribute towards climate action. Less chemical pollutants will enter the environment. The reliance on fossil fuels will decrease. The use of renewable energy sources for charging your vehicle will increase. Improved air quality will help the environment and human health. Financially, you will receive a tax saving and a saving on fuel consumption.
[bctt tweet=”Environmental & financial benefits of an electric or hybrid company car: less pollution & fossil fuel use, improved air quality & health, increase in renewable energy use, car tax and NI savings. #ExtinctionRebellionLondon #Climatechange https://wp.me/paa1rr-1A via @smartgreenmoney” username=”smartgreenmoney”]
There are numerous websites you could visit to read more about the environmental and financial benefits of electric and hybrid cars, below is a link on how else businesses can help combat climate change: