There has been a lot of talk in the media recently about electric cars. The government has outlined (ambitious?) plans to have a million electric vehicles on our roads by 2030, so unless some other technology comes along between now and then, it looks like electric cars and electric vehicles are the future.
So how is that going to affect company cars?
You would have to assume that if the government plans are to be a success, then there is going to have to be a major move to replace current and future carbon producing vehicles with electric vehicles and the only way to do that is by punishing those that use the older vehicles and incentivising the use of electric cars and vans.
So what are the current benefits of switching to an electric company car?
No BIK on company cars
If you or your employer buy an electric vehicle through the company and meet certain conditions (the original value has to be under €50,000) then the use of the vehicle by directors or employees does not attract benefit in kind tax treatment. This is a major bonus to company car drivers.
Reduced ongoing costs
Currently there is no charge if you charge your car in any of the Ecars national charge network. There is also no cost to you if your employer gives you access to a charger in work.
If you are driving an electric vehicle for work you can also register for a 50% reduction in toll fees, depending on your mileage that could be a large saving over a twelve month period.
Reduced taxes
An electric vehicle currently attracts a flat road tax charge of €120. As the government begins to punish petrol and diesel users, this could be a major saving as well.
Helping the environment
At this stage, they’re cannot be any rational debate about whether climate change is real or not. Everyone will need to play their part in reducing carbon emissions and how better to show you and your companies climate saving credentials than by operating an electric car or electric vehicle.
What are the down sides of using an electric car for business use?
One of the big worries for business electric vehicle users is range anxiety. Will I have enough charge to get me to my meeting and back? The good news is that as new vehicles (Hyundai Kona electric, Kia eSoul and eNiro) are introduced to the market, the range of the vehicles per single charge has increased (think realistic range of 400km).
Also higher end longer range vehicles such as Tesla’s are now available on the second hand market for under the €50k threshold (though these vehicles won’t be BIK exempt as the exemption is based on the original value).
The cost of these vehicles can be a lot higher to buy than a diesel or petrol equivalent, but the initial cost needs to be weighed up with the cost savings over time.
Up until recently one of the other downsides of buying a vehicle through the business was insurance. It was quite difficult/expensive to register a vehicle in a company name but insure it privately, with a lot of companies refusing to cover that arrangement.
Thankfully we at www.EVinsurance.ie can accommodate company car users at no extra cost to the client or the company.
Taking all of the above into consideration it is starting to look like a no brainer to convert your company car to an electric company car.
And if you decide to do so, please contact EV insurance to see how we can help or click here for an online quote . EV insurance – Different vehicles, different cover.