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Electric car tax break could see huge switch towards company cars

Electric car tax break could see huge switch towards company cars

By Swansway Motor Group 23-02-2020

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Study shows 80 per cent of employees who don’t currently use a company car could do so for an EV

A change in the Benefit in Kind tax could see 80 per cent of employees who currently opt out of company car schemes make the switch back with an electric car.

According to a survey by electric vehicle leasing company DriveElectric, the move to have zero company car tax on EVs from April 2020 will be a driving factor in the switch.

When the lower running costs are also taken into consideration, company car drivers could save thousands of pounds each year. Other incentives include the increase in the number of Clean Air Zones, the government’s plan to ban non-EVs from sale in 2035, and motorists preferring the driving experience of an EV, the company said.

Mike Potter, managing director of DriveElectric, explains the link between the return of the company car and achieving the EV targets set by the government: “Our survey shows that eight out of ten business employees are ‘likely’ or ‘very likely’ to move back to company cars – and these will these will be pure electric.

“This suggests that, as long as incentives remain, the government’s target of all new car sales to be electric by 2035 – or 2032 – is  achievable, and in addition private buyers will benefit from an increased supply of two-to-four-year-old used electric cars, spreading the benefit of this investment.

“DriveElectric’s orders are already composed of 95 per cent battery electric vehicles and our average fleet CO2 is 28g/km, although based on our order book, this will very soon drop to 10g/km.”

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