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What Are The Benefits Of Investing In An EV Fleet For A Business In London?

With persistent government efforts towards boosting the number of electric vehicles on the road, businesses are getting more inclined towards buying them. This is because there are a lot more long-term cost benefits of EVs compared to other fuel variants even though their initial cost is high. In this guide, we have discussed all the benefits of electric vehicles (EVs) for businesses and how they are easy to maintain in the long run.

Benefits Of An EV Fleet

Here are some benefits that make electric vehicle fleet management for a business beneficial.

A Sustainable Commitment

Switching to electric vehicle fleets is a clear demonstration of a company’s commitment to reducing its carbon footprint. As the UK and the world tackle climate change, environmentally conscious business practices are not only ethical but also essential. EVs produce zero tailpipe emissions, contributing to improved air quality and a reduction in greenhouse gas emissions. This will further improve a brand’s reputation in the market and attract environment-conscious customers.

Cost-Effective Approach

EVs consist of fewer parts compared to traditional vehicles that are powered by petrol and diesel. Due to fewer components, the overall cost of maintaining the electric vehicles is low which will further save money for a business. It is estimated that the cost to maintain an electric battery-powered vehicle is approximately 30% to 40% less than its petrol or diesel variant.

Rebate from London Congestion charge

You have to pay a daily congestion charge of £15 if you drive your vehicle in the London congestion zone. However, if you own a battery electric fleet then you can benefit from the cleaner vehicle discount. You have to submit the required documentation for the exemption. Also, you have to pay £10 to register a new vehicle and you have to renew the discount every year.

Freedom To Travel In CAZs (Clean Air Zones)

With electric vehicles, you have the freedom to drive in Clean Air Zones. This is not possible for all the petrol and diesel vehicles without being penalised. Petrol vehicles have to fulfil the Euro 4 standard to avoid charges to drive in the zones and diesel vehicles need to fulfil the Euro 6 standard. 

In case your vehicle fails to meet these standards and you drive in the Clear Air Zones then you have to pay a heavy penalty. Having an electric fleet for your business will reduce this stress and your drivers can easily complete their jobs in London without any penalties.

Other Tax Benefits

Companies can enjoy significant tax benefits such as lower company car tax or BIK tax (Benefit-in-Kind tax), enhanced capital allowances, and exemption from Vehicle Excise Duty (road tax) for electric vehicles.

The BIK Tax is calculated by analysing different parameters such as the income tax band of the employee, CO2 tailpipe emissions, and the P11D value of the vehicle. So, investing in an EV fleet will allow the business to enjoy tax benefits and enjoy better savings.

Future proofing of your company

The UK government plans to ban the sale of new petrol and diesel cars by 2035 so it is time to transition from a traditional ICE fleet to an EV fleet.