The average company car driver, travelling 18,400 miles a year could save over £1,000 each year by switching to an electric car
Electric And Hybrid Company Cars
Over the last few years the company car market has changed considerably, especially with a wide range of electric and hybrid cars being introduced to the market. At Inchcape we have picked our top 10 company car choices.
Top 10 Company Car Choices for 2021:
Audi E tron
BMW 330E (PHEV)
Jaguar I Pace
Volkswagen ID 3
Volkswagen ID 4
Benefits Of An Electric Company Car
By going electric, you can benefit from a range of tax incentives, exemptions and government grants that reduce the initial purchase price of electric cars and charging equipment. When combined with the significantly reduced running costs over petrol or diesel equivalents, the financial rewards of choosing an electric vehicle via your company can soon add up.
The most obvious saving of going electric is benefit-in-kind (BIK) tax. Determined by a car’s purchase price and CO2 emissions, BIK is one of the biggest company car expenses. A typical low-CO2 petrol hatchback attracts a 29%-32% BIK rate per year from April 2020 to March 2023. This would cost around £3000 to £3400 per year in BIK for a company car driver in the 40% tax bracket. Compare this to a fully-electric vehicle, such as the Audi e-tron (attracting a BIK rate of just 1% in 2021 / 2022 and 2% in 2022 / 2023) and the equivalent driver would only need to pay around £500 per year. A significant saving.
Calculate your BIK rate here: https://www.nextgreencar.com/company-car-tax/calculator/
Electric cars are also exempt from the congestion charge tax. So, if your company cars are travelling in areas where clean air zones exist or are about to be introduced, then this also adds to the tax savings of electric driving over the year.
The current congestion tax in London costs £11.50 per day per vehicle between 07:00 and 18:00, Monday to Friday.