In our Part 2 of our Special Feature Series, the spotlight is still firmly on electric vehicles, with this article taking a look at just how businesses and company car drivers in particular can save substantial amounts by changing their cars and vans to BEV's (battery electric vehicles).
Making the change from driving a diesel, petrol or even a hybrid-technology vehicle to a fully electric one can save you some serious money.
Special Capital Allowances - Go low!
Businesses can claim capital allowances when they buy vehicles that are used for business. This means that they can deduct the cost of the cars purchased to offset against profits before paying tax. A company can also treat the monthly rental for leased electric vehicles in the same way.
The rate capital allowance on vehicles can be claimed depends on the car's CO2 emissions. For new cars purchased between April 2015 and April 2018, the full value of the vehicle can be deducted if the emissions are 75g/km or less. For cars bought after this date, the level to qualify falls to 50g/km.
You can read more about capital allowances by clicking here.
Congestion zone charge be gone!
All-electric vehicles (EV/BEV) and eligible plug-in hybrid electric vehicles (PHEVs) qualify for a 100% discount from the London congestion charge;
Lower your company car tax with an EV!
Why pay more Benefit in Kind (BIK) Tax than you need to?
As from 6th April 2020, electric vehicles will be exempt from BIK (Benefit-in-Kind) Company Car Tax. Drivers will be able to save substantial amounts of money on all environmentally-friendly vehicles - the lower the CO2 emissions are, the better!
The table below shows the new bands and tax rates for tax years 2020 to 2023, for cars first registered from 6 April 2020.
Company car tax bands from 6 April 2020 for cars first registered from 6 April 2020
|2020 - 21|
|2021 - 22|
|2022 - 23|
|1 - 50||> 130||0||1||2|
|1 - 50||70 - 129||3||4||5|
|1 - 50||40 -69||6||7||8|
|1 - 50||30 - 39||10||11||12|
|1 - 50||< 30||12||13||14|
|51 - 54||-||13||14||15|
|55 - 59||-||14||15||16|
|60 - 64||-||15||16||17|
|65 - 69||-||16||17||18|
|70 - 74||-||17||18||19|
|75 - 79||-||18||19||20|
|80 - 84||-||19||20||21|
|85 - 89||-||20||21||22|
|90 - 94||-||21||22||23|
|95 - 99||-||22||23||24|
|100 - 104||-||23||24||25|
|105 - 109||-||24||25||26|
|110 - 114||-||25||26||27|
|115 - 119||-||26||27||28|
|120 - 124||-||27||28||29|
|125 - 129||-||28||29||30|
|130 - 134||-||29||30||31|
|135 - 139||-||30||31||32|
|140 - 144||-||31||32||33|
|145 - 149||-||32||33||34|
|150 - 154||-||33||34||35|
|155 - 159||-||34||35||36|
|160 - 164||-||35||36||37|
|165 - 169||-||36||37||37|
|170 and above||-||37||37||37|
EV electric vehicle government grant - save £££'s!
By going electric, you can benefit from a government grant towards the cost of the vehicle of up to £3,500 (35% of the purchase price). If you are leasing the car or van, we will have taken this into account to calculate your monthly payments - winner, winner!
Go electric and save money. It's that simple.
In any event, if you choose to drive an EV, you stand save in the long run. Electricity is cheaper than fuel, and servicing costs are less as there is no clutch or exhaust to worry about!
Your council may offer free parking for EV's and remember that there are no congestion charges to pay - cars that emit under 75g/km CO2 will also pay less road tax in the first year.
Instant online quotes on electric vehicles | Great deals from All Vehicle Contracts Limited
Quote online across an entire range of EV and eco-friendly cars and vans on AVC's website by clicking here. Customise your requirements and tailor-make your quotation to suit your needs in a matter of seconds.
Watch this space for our next EV feature article in a special series, which will include some special, limited-time contract hire and leasing offers on qualifying vehicles.
Enquire and order online, request a free of charge call-back or 01902 353393 - find out how All Vehicle Contracts Limited can save you money on your motoring costs today.
All Vehicle Contracts Ltd Published: Jan 30 2020