Deloitte Claim Large Fleets Could Save £1.9m a Year if They Move to EVs
The Government’s initiative to make all vehicles on the road electric isn’t just a fantastic move in the bid to contest climate change, but it could represent a fantastic cost saving too.
According to research undertaken by Deloitte, a fleet of 900 or more cars moved across to EVs could see a saving of £1.9m to the business in question.
Company car drivers, who opt for EVs will cut employee total cost of ownership bills by 95%, claim the Consultancy Firm – this is as a result of the new benefit-in-kind tax rates that are set to come into force in April 2020.
Zero emission vehicles are currently subjected to a 16% benefit-in-kind tax rate, but that figure is set to drop to 0% – one of the largest tax cuts, in any area, in recent history.
Deloitte’s analysis says that a higher-rate taxpayer who drives a diesel company car, with a list price of £30,000, can currently expect to pay just over £18,000 in tax and fuel costs over a four-year period. This new initiative would see that figure cut to zero.
The UK Automotive Lead at Deloitte, Michael Woodward, has claimed that, “for many businesses, there are operational, employee and environmental benefits in transitioning to EVs. However, the suitability of electric must make sense before making the switch. For some, EVs will already be a viable option given their fleet journey patterns, and next steps may simply be building a robust policy and plan to support wider EV adoption.”
It’s essential that any such increased demand for EVs, as a result of this tax initiative, can be supported with an EV infrastructure that is fit for purpose.
Utility Trade Group are exhibiting at the Connexus Annual Conference on Tuesday 15th October, and the transition to EV will be a key talking point over the course of the day. EV charging points are perfect if you’re looking to attract new customers to your location, improve your sustainability rating by earning BREEAM credits and helping to comply with ESOS.
The benefits of the transition to EVs remain unparalleled, and we remain at the forefront of the industry when it comes to EV installation. If you’d like to discuss any requirements in this area, then visit us at the Connexus Annual Conference, or get in touch today.
