DID YOU KNOW AS OF 6TH APRIL 2021,THERE WILL BE 0% BIK TAX FOR COMPANY ELECTRIC VANS?
That means you could have an electric van courtesy of your company and it won’t cost you a penny. This is due to an initiative that the UK government has introduced in a bid to get more electric vehicles on the UK roads.
A ban is being introduced in 2035 on the sale of new petrol, diesel and hybrid vehicles, as the UK government aims to be completely carbon zero by 2050. As a result, the British public will be able to buy only electric vehicles from this point.
SO HOW CAN YOU BENEFIT FROM THIS?
Well for a start, you could pay 0% BIK tax for company electric vans or electric company cars.
Benefit in Kind tax as of April 6th 2020 was dropped to 0% for electric company cars. In 2021/22 this increases to 1% and then further increases to 2% for 2022/23.
As the electric company cars have received a warm reception, the government has now included electric vans in with the incentive. So as of 6th April 2021, you will be able to benefit from 0% BIK tax for company electric vans.
GREENER, CLEANER AND NOW MORE AFFORDABLE
The government tax changes have made electric vehicles very attractive. Electric vehicles are here to stay, there is no doubt about that. So now with new tax incentives, EVs are a great way to try them out without bearing huge costs.
The environment is something that matters to many companies, as well as public sectors. This is especially so as both have to work towards ISO14001 Corporate Responsibility targets. Therefore introducing electric vehicles including both cars and now vans into your fleet can help address many environmental goals.
ELECTRIC VEHICLES DURING A PANDEMIC
During the Coronavirus Covid-19 pandemic, there is much more flexibility for staff members. This means much more flexible working, with people not driving as far or as often. These are the two biggest concerns surrounding electric vehicles, the distance that can be travelled and the charging infrastructure. With more EVs coming out with even larger batteries and therefore more range, as well as more charge points being installed, the issues surrounding EV adoption are quickly becoming a thing of the past.
With less employees travelling to work via public transport, more are preferring the security and protection of travelling on their own in a vehicle. However this concerns the government and employers, as more vehicles on our UK roads means detrimental effects on our pollution issues.
Therefore as an employer and employee, it is important to make a positive difference by driving a car or van that reduces the carbon footprint, reduces fuel bills and therefore the company’s overall environmental impact.
WHY SHOULD YOU INVEST IN ELECTRIC VANS?
Well Salary Sacrifice is the best way. Salary sacrifice for electric vans is one of the most affordable ways for employees to drive a new van.
Through salary sacrifice, employees can afford a van which might be too expensive otherwise. It’s not just a nice perk for the employees, as an organisation electric vans are more reliable due to less moving parts, meaning maintenance costs are lower. In addition electric vehicles in general including electric vans come with ample on-board technology. This means they are a lot safer compared to conventional petrol or diesel counterparts.
For electric vehicles on salary sacrifice you can use pre-tax income for salary sacrifice, plus the Benefit-in-Kind (BiK) tax rate.
HOW EVISION ELECTRIC VEHICLE HIRE CAN HELP
We make things as easy as possible for the employer and the employee.
- The employee chooses one of our low emission electric vehicles.
- Then chooses the contract term, whether 1 year, 2 years or 3 years+.
- The employee can choose a collection point or have the vehicle delivered to a home or work address.
- We will credit check the company and set up an account.
- There is no deposit to pay, just drive the vehicle away!
When renting a vehicle from EVision, our EV Care Package is included:
- 20,000 miles annual mileage limit (per annum).
- EVision will provide a free industrial / commercial / home vehicle charging point (installation not included).
- Full maintenance and service costs included, including tyre wear.
Want more information, speak to one of our friendly EV specialists.
Simply email firstname.lastname@example.org or call 01634 914063 and ask to discuss Benefit in Kind and Salary Sacrifice.