BMW iX3

Why Your Company Cars Should be Electric

Electric vehicles are becoming more and more commonplace. With charging networks giving you access to charging stations all over the country, it’s more accessible than ever to own an electric car – and your employees want to be a part of it!

By providing electric cars to your employees, you demonstrate your commitment to your social responsibilities, give your employees an extra incentive, and save yourself a bit of money on the side; let’s go over how all of it works.

Sustainability and Electric Fleets

There is no question that the introduction of electric vehicles on the road, is, and will continue to be better for the environment than current petrol or diesel cars on the road today. Yes there have been questions about the cost to produce electric car batteries, however we must remember that this process will only continue to be streamlined and improved over time. Any current areas in production that need this improvement, will be improved upon and electric cars will only become less impactful on the environment as research and manufacturing processes improve.

Research conducted by Carbon Brief, shows that an electric Nissan Leaf pays back all carbon emitted from manufacturing within two years of purchasing and driving the vehicle. In addition, an electric car will emit up to 30% less carbon than a standard car, based on an average yearly driving distance for cars driven in the UK.

Tax Benefits for Electric Company Cars

With most salary sacrifice schemes, there’s a tax that your employee has to pick up.

Usually, when you give your employees a company car, there’s a benefit-in-kind (BIK) tax that applies – that is, unless your company car is electric. For most electric cars the BIK tax is actually at 1% for 2021/22, meaning your employees can enjoy the benefits of a company car without having to pay the tax.

Choosing to provide electric cars for your employees shows not only that you care about the environment, but that you care about your employees too; you’re giving them the best deal possible when you choose electric cars.

Grants for Electric Company Cars

If you’re already offering company cars, you might wonder what the point is in suddenly switching to provide electric vehicles – surely that just involves more upfront costs?

Currently, the government is offering a Workplace Charging Scheme which subsidises a portion of the cost of purchasing and installing workplace charging stations, as well as a Plug-In grant which gives you a grant towards the purchase of an electric vehicle.

You can currently receive up to £2,500 towards a new electric vehicle, and up to £300 towards the purchase and installation of new charging stations, so if you’re thinking about taking the plunge the time is now.

Cost of Electric Company Cars

Alongside the discounted upfront costs for electric company cars, they’re significantly cheaper for your employees to run day to day.

On average, it takes 3-5 hours to charge an electric car to a full battery, and with an average cost of 30p per hour, you can have a full tank in an electric vehicle for just £1.50 – that’s huge savings for your employees. Due to it being so inexpensive, many businesses allow their employees to charge for free at work, which adds yet another benefit to the scheme.

But what about outside of work? Luckily, there are huge roaming schemes available that allow you to charge at thousands of charging stations across the country, and even internationally depending on which scheme you pick. Rapid charging stations are becoming so commonplace that even supermarkets have them, so you’ll never have to worry about your employees being stuck without charge.

How Electric Company Cars Affect Hiring & Your Employees

First and foremost, providing company cars is a benefit for your employees, so how will electrifying your fleet affect them?

A lot of people are waiting for an opportunity to purchase an electric car; maybe they can’t install a charge point at their home, they don’t have the funds to invest upfront, or they’re waiting for their current car to give up the ghost. Either way, an electric car feels like a very different investment from an internal combustion engine (ICE) car, it feels more like a luxury, and people want to wait to make the right decision and get into the market at the right time for them.

By making electric vehicles more accessible to your employees through a company car, you make what feels like a luxury more accessible – that’s something that will definitely set you apart from competitors. If a candidate for a role is choosing between you and a competitor for work, having luxury benefits like a company car is a huge advantage.

It also keeps your current employees motivated and engaged; everyone wants to work for a company that’s committed to the environment and sustainability, so providing them with sustainable transportation options can boost their pride in the company as a whole, increasing their motivation and productivity.