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Is now the time to switch to an EV fleet?

30 September 2020

In the past few months or even years, with growing environmental concerns and more options on the market, you may have started to think of switching to an Electrical Vehicle (EV) fleet. 

However, you may not have realised the financial benefits of investing in an EV fleet and during these challenging times, now may be the ideal opportunity to switch to a more cost-effective fleet.

In February, we distributed a guide on the Government’s changes to Benefit in Kind (BIK) tax rates depending on when your vehicle was registered and its CO2 emissions. Click here to view it.  

The most significant change was for 2020/21 a 0% BIK rate for EV cars. In addition, there will only be a 1% BIK rate in 2021/22 and 2% in 2022/23 for EV vehicles.

The company will also be able to save on Class 1 National Insurance contributions NIC).

However, research by Go Ultra Low found that 32% of fleet managers did not know that BIK rates had dropped to 0% for fully electric vehicle. This is why we wanted to remind everyone that EV fleets are becoming a much more cost-effective option as well as minimising your company’s environmental impact. 

If you are a cash taker, now may be the ideal time to opt into a company car, as it will cost you very little in BIK over the term. 

It also means you have no additional risk of purchasing or leasing your own vehicle and the associated costs of insurance, servicing, New Road Tax (RFL) and residual value.

If you are interested in the possibility of switching to an EV fleet, then as always please be sure to contact us with any questions you may have, and we will be happy to assist.

We hope you find this information helpful.

If you would like further information, please contact us on 01480 414541 or email info@marshall-leasing.co.uk

Image courtesy of Go Ultra Low.

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