Large corporations and SMEs alike are turning to electric cars and workplace EV charging to drive change in their business and industry for the good of the environment. But there is a solid business case to be made too.
Electrifying your company cars and choosing a fleet (big or small) of pure electric or premium grade hybrid vehicles, plus a fast and cost-effective workplace EV charging solution, is a change all companies will eventually have to embrace.
Many of the world’s largest companies are already in their transitional phase, leading from the helm when it comes to ditching internal combustion engine vehicles (ICE vehicles) for the greater good of the environment. We all know that electric cars are the “greener” choice, and that workplace EV charging will preserve the planet’s natural resources. But what is the business case for switching sooner rather than later?
Electric Fleet and Workplace EV Charging: The Business Case
Environmental preservation aside, there are a surprising number of business benefits to electrifying your company vehicles, or even offering workplace EV charging for employees and customers. Let’s look at two significant drivers for change.
Fueling Business Growth
The millennial generation is penetrating the workplace and bringing with them radical new ways of working and thinking. This generation is inherently more aware of the environment and expects employers to play their part. In fact, one recent study showed that,
Millennials will make up three-quarters of the global workforce within five years, meaning now is the time to act if your business doesn’t cut it with green credentials, to prevent losing talent and even customers to greener competitors.
Reaping the Financial Reward
The Workplace Charging Scheme (WCS) offers financial support for the initial installation and purchase of EV charging stations for businesses. There are far more financial benefits though if you make the right choices when electrifying your fleet and purchasing charging sockets for your car parks.
Many leading brand EVs are eligible for a 0% benefit-in-kind (company car tax) rate for the 2020/21 tax year, which will rise to just 1% in 2021/22 and 2% in 2022/23. It will then be held at that rate for a further two years. The average petrol or diesel vehicle has a BIK rate of 20% to 37%. Furthermore, because electricity is not classed as road fuel, no BIK occurs when an employee charges an electric car at their place of work.
Your company can also claim a First Year Allowance (FYA) for up to 100% of the cost of any qualifying electric car. It was announced in the March 2020 budget that this incentive would be extended until 31st March 2025. There are reductions available also in Class 1A National Insurance Contributions.
Salary sacrifice schemes are becoming increasingly popular within businesses offering EVs, in which employees can choose to forgo a portion of their salary in return for a new car at a lower cost than they could realistically achieve on the open market.
These schemes allow employers to take advantage of these cost savings whilst enhancing the package of benefits they can offer to new and existing employees.
Make no mistake, a company car park without a number of electric car charge points will soon become a thing of the past. Now is the time to act to stay ahead of the competition.