Electric vehicles for business
Following the government’s announcement banning the sale of all new petrol and diesel cars and vans from 2030, it is important for Kent businesses to prepare for the transition of their fleets.
This section sets out the tools available to assist businesses while also highlighting some of the overall incentives of going electric.
Reasons to go electric
Readying for 2030 is not the only reason that businesses are preparing for the change to electric vehicles (EVs).
EVs are often cheaper to run than petrol and diesel vehicles and with fewer moving parts, maintenance costs can come in at half the price. Therefore, despite the higher upfront costs of an electric vehicle, in the long run there are clear cost savings.
In addition, the positive environmental impact is plain to see. Whether setting out commitments in line with national requirements, or delivering self-imposed targets, reducing a business' carbon footprint is key. As 27% of greenhouse gas emissions are associated with transport, a greener fleet is a vital part of a sustainable organisation.
Funding available to help you switch
The Workplace Charger Scheme is a government initiative providing support towards the cost of EV charge points and their installation. The funding is available to businesses, charities and public sector organisations and covers up to 75% of the cost and installation of EV chargers, capped at 40 sockets per applicant and at £350 per socket. Visit the Workplace Charging Scheme website for further details on eligibility and information on how to apply.
Plug-in vehicle grants are also provided by the government offering vehicle dealerships grants to bring the customer price down on new low emission vehicles. This can offer savings of up to 35%. View a list of vehicles eligible for the grant.
Tax benefits
There are currently several tax incentives to encourage EV uptake.
- Electric vehicles are currently exempt from vehicle tax. This is set to change in 2025.
- Company car tax and benefits in kind: these can be challenging to calculate as they are dependent on factors including your earnings, the value of the vehicle and whether you contributed towards the initial cost of the vehicle. However, another important factor is the vehicle’s CO2 emissions and fuel type. Currently the company car tax is fixed at 2% of the EV’s taxable list price, which is set to remain until 2024/25. This is vastly cheaper than petrol and diesel vehicles which can demand a taxable rate of up to 37%. You can check and update your company car tax online.
Depending on the circumstances, you may be eligible for tax relief on the energy used to charge an employee’s company car. To find out more you can visit the government’s expenses and employee benefits website.
Cost of charging
Understanding the cost of charging your EV can often be difficult, especially when considering the difference between charging at home and on the public charger network. However, calculation tools are available to help compare costs of charging EVs as well as understanding potential savings when compared to refuelling fossil fuel vehicles.
The Zap-Map calculators do not only offer a journey cost calculator but also an idea of how much it costs to charge an electric vehicle at either a public charge point or at home.
Further assistance for EV readiness
Diode offers a free software platform which helps businesses and their employees break down the barriers to transitioning to electric vehicles. The Diode Charge Platform collects employee journey data to provide drivers with an EV readiness report and the data is aggregated to provide businesses with charging infrastructure recommendations and simplify the procurement process.