As demand for hybrid and electric vehicles increases and measures such as clean air zones become more widespread across the UK. Is your business prepared to start making the switch from conventionally-fuelled vehicles to hybrid or electric?
Planning and making the transition to a green fleet will be a individual challenge and require completely different needs from business to business. However reviewing your fleet policy and stating to make different vehicle choices doesn't have to be a headache.
The PVM team can help you with evaluating your fleet’s fuel mix, choosing the right hybrid and electric vehicles for your business, giving your employees the best choice in low emission company cars and most importantly staying compliant with the latest government guidelines.
Take a look at our links and information below for more information and advice:
The benefits of switching to hybrid or electric
Choosing hybrid or electric
There is an ever increasing number of Hybrid and Electric vehicles coming onto the market, with a wide variety of benefits for drivers and businesses looking to make the switch. Each of these vehicles has its own pros and cons, based upon its capability, maintenance, and intended use. If you’re uncertain whether hybrid or electric vehicle is the ideal selection for your business, below outlines the benefits you could gain from either.
The main advantages of a hybrid are that it should consume less fuel and emit less CO2 than a conventional petrol or diesel vehicle. Hybrid car owners can also receive the added benefits such as lower first year road tax, lower company car tax, and the ability to possibly avoid congestion charges depending on the vehicle chosen.
There are a number of great benefits to electric vehicles (EVs) over conventional petrol/diesel vehicles and even hybrid vehicles. Plug-in electric vehicles often have the very latest technology helping improve battery life, reduce emissions and save money. Electric motors also react very quickly, making EVs very responsive.
A full list can be found here: https://ev-database.uk/
Electric motors deliver their maximum torque rating instantly allowing hybrid vehicles to match the performance of conventional petrol or diesel vehicles.
Hybrid cars tend to have better fuel economy and lower tailpipe CO2 emissions than conventional models. Most forms of CO2-based road and company car tax are generally lower for hybrids than they would be for an equivalent non-hybrid car.
For example, the equivalent to a petrol hybrid car with CO2 emissions of 100 g/km (13% BIK rate) would probably be in at least the 18% BIK rate band – cost wise this would translate to a saving of at least £1,000 per year for a model worth £20,000.
As these vehicles are highly sort after and often include the latest technology, the depreciation is usually less than that on a petrol or diesel vehicle.
Vehicles with 0% CO2 emissions are exempt from Clean Air Zones (CAZ), Low Emissions Zones (LEZ) and London's Ultra Low Emission Zone (ULEZ).
For more detailed information on charges, discounts and all exemptions please see: https://tfl.gov.uk/modes/driving/congestion-charge/discounts-and-exemptions
See http://www.gov.uk/ website provides for more comprehensive information on this.
Changes to tax rates in 2020 see fully electric cars paying no Company Car Tax (CCT) in 2020/21, just 1% in 2021/22 and 2% in 2022/23.
Other Tax benefits include the introduction of new Government grants, National Insurance savings, exemptions from Vehicle Excise Duty (VED) and special Capital Allowances for ultra-low emission cars and fully electric vehicles have been enhanced.
The main types of hybrid and electric vehicles
Making the right vehicle choice for your business
The current choice of hybrid and electric vehicles available already offers a huge choice in every vehicle type from every manufacture. Every operation has different vehicle needs whether that is providing company cars, employee salary sacrifice schemes or buying a fleet of vehicles for everyday operational purposes. Knowing the type of journey's to be made, mileage/range to be covered and purpose of the vehicles needs to be identified before looking at what is available.
Finding the right EV or Hybrid commercial vehicles
Finding the right hybrid or electric commercial vehicle (CV's) for your business is set to become an even bigger consideration for fleet operators, especially as over two thirds of current EV registrations are for businesses or fleets. If you fleet operates around towns and cities with really great access to charge stations then you will almost be spoiled for choice regarding the full electric options. However, if you are looking for vans that can cover longer distances or need to be able to transport a heavy payload, a hybrid van could be a better option.
For more in information contact us to see how we can work with you to find the most suitable vehicles, or take a look at these links:
Range and Charging
Vehicle range is the distance an EV or Hybrid can travel from a full charge and there are three main types of charging – rapid, fast and slow. Slow units are most often used overnight, fast chargers usually charge within 3-4 hours (a great option for workplace units) and rapid chargers can take anywhere between 30-80 minutes.
For a lot more information on:
- What factors can affect vehicle range
- The types of charging is available and where
- Tackling Range Anxiety
- Getting the most out of your charge and extending your range
Costs and Savings
One of the main attractions with hybrid and electric vehicles is the potential financial benefits. Especially when you operate a fleet of vehicles, where savings can soon add up.
- The cost of electricity is lower than petrol or diesel and the difference is enhanced by VAT (5% on electricity and 20% on fuel).
- Electric vehicles are exempt from fuel duty and are designed to be fuel efficient.
- There is no tax on the electricity used to charge vehicles at the workplace.
- 100% capital allowance provides further tax relief.
- For employees, electric vehicle's with zero emissions, will be taxed at 0%, paying no BiK at all increasing to 1% in 2021/22 and 2% in 2022/23. While Hybrid cars that are classed as ULEVs, although don’t receive the 0% BiK rate, do have a much lower rate than a non-ULEV.
The following links offer much more information, guides and resources.
- Take a look at our Hybrid and EV FAQ's
- Find out what Hybrid and EV vehicles are currently available
- Read our Driving Electric Blog
- Search for Charge points nearby
- Installing charge points for your business
- Take a look at the latest Government Guidelines