Cars with CO2 emissions exceeding 110g/km must be allocated to the special rate pool, where the WDA is 6%. “The latest EV tech is gaining widespread trust,” says Mr Kidd. These cars are very affordable to maintain and often a great option for anyone looking to benefit the environment. If an employer provides an electric car to their employee, a taxable benefit in kind will arise. In general electric cars are still behind gas powered vehicles in their ability to to accelerate and climb quickly. Employers looking to provide tax-efficient company cars in the future should consider electric cars and hybrid models with a good electric range. With no tailpipe, pure electric cars produce no carbon dioxide emissions when driving. Electric bikes will also qualify for the Annual Investment Allowance. It also highlights the potential savings drivers of electric vehicles can expect as compared to driving a conventional petrol or diesel car. Electric vehicles offer a range of financial, performance and environmental benefits in comparison to petrol and diesel vehicles. Benefits of an Electric Car. In the UK, we’re inching towards electric cars as a viable alternative for both buying and leasing. June 8, 2010, C Kapoor, 1 Comment. Alternative fuels . So while the price to buy many EVs is still higher than that of their petrol or diesel counterparts, you’ll spend less on fuel costs each year. Company car tax rates for EVs will tumble from April 2020 when the BiK rate for full electric cars will drop from 16 per cent to 2 per cent. Government plans to bring forward a ban on the sale of new petrol and diesel cars from 2040 to 2035, and outlaw hybrids too, has sparked a surge in online searches for electric cars by UK drivers. What company benefits you pay tax on - including company cars, low-interest loans and accommodation, and what company benefits are tax-free, such as childcare Electric cars don’t have oil and don’t require that maintenance task or others associated with a gas engine. Electric cars are all automatic and … Electric cars are undoubtedly the next big thing - thanks to an extensive choice, standard ranges of over 100 miles and improving economic benefits to owners, plus a massive public charging network that is continually expanding. Environmental Benefits of Electric Vehicles. Most mainstream electric cars will do around 100 miles between charges, so if you want to do a long journey, you’ll have to do a lot of planning. ... Z.E. Other Benefits of Electric Cars. Electric cars will incur no benefit-in-kind tax for the 2020-21 tax year. Independent reviews of all electric cars on sale in the UK past and present. Thanks to the use of brushless electric motors that can deliver unfettered power instantly and efficiently, acceleration is no problem for electric cars, in fact some of the fastest cars in the world are electric. That simply means you get maximum power without having rev through the gears, so acceleration is instant. The value of this is calculated in the same way as for other company cars[1], with the following differences for Pure-electric cars: The lower appropriate percentages for … 50 Review 04 Aug 2020 The Renault ZOE was one of the first mass produced EVs, and the latest Z.E. Modern electric cars can travel up to 670 miles on one charge, so bearing in mind the average car journey in the UK is just nine miles, a full charge will last most car drivers many weeks or even months.. And with the Government recently announcing that high-polluting diesel cars will not be welcome in London by 2021 and will be totally banned UK-wide by 2040, one thing is abundantly clear… For climate change gases (such as CO2), electric cars charged using average UK electricity show a significant reduction in emissions; the figures suggest a reduction of around 25-40% compared to an average conventional car. This guide provides an overview of tax for electric cars and electric company car tax in the UK. This reduces air pollution considerably. With everything from tax breaks and congestion charge exemptions to Government grants available, the eco-conscious consumer can now make an economical choice of transportation that benefits the environment as well as their finances. If an electric car has CO2 with less than 50g/km of emissions can also qualify for 100% first-year capital allowances. Benefits Of Electric cars. Top 10 benefits of electric cars 1. At the moment, the benefit-in-kind, or BiK rate, on a pure electric car is 16 per cent and the way that the maths works means much of the tax benefit of the salary sacrifice is eaten up by the charge. Electric cars are incredibly quiet, making for a more relaxing atmosphere. Government grants. Electric cars are no longer an out-of-reach option for most, thanks to Government incentives making hybrids and EVs more affordable. Fueling with electricity offers some advantages not available in conventional internal combustion engine vehicles. This electric car tax relief is potentially a big saving for employees, making them more likely to choose an electric vehicle as a company car. But the Government plans to be the catalyst in this change by pumping money into electrical charging points. Besides air pollution, they also make no sound, so they don’t contribute to noise pollution either. Sales of both electric cars and plug-in hybrid cars are up 25 per cent this year - with a new model registered on average every nine minutes in the UK. In addition, the brakes on electric vehicles tend to last longer. Electric cars currently receive a 100% discount on the London Congestion Charge. That statement simply isn’t true. Electric cars are seemingly the future of transport in Britain. Electric cars are the future. They can reduce emissions and even save you money. 50 model has the benefit of a longer range of ... Read more review. Planning ahead. Eco Cars is a supplier of electric eco cars. A total of twelve eco-driven projects are set to receive almost £40 million to fund improvements like solar-powered forecourts and underground charging systems. Maintenance costs are also lower. You have to charge an EV, which takes much longer than filling up a tank with fuel. Because electric motors react quickly, EVs are very responsive and have very good torque. There are many fantastic reasons to buy an electric car not least because they are the future of motoring. Tax benefits. W ith the accelerating drive for cleaner, energy-efficient cars, here are 10 reasons why hybrids are increasingly the go-to choice for buyers.. 1 Hybrids are less polluting. Electric cars produce zero emissions, so they don’t contribute to air pollution at all. Electric company cars. Find out whether you or your employee need to pay tax or National Insurance for charging an electric car. Home » Electric Vehicle Benefits. Electric car VED . The cost of running an EV is significantly cheaper than a petrol or diesel car. 6 Benefit from slower depreciation. Electric cars don’t need oil changes and other service items. Electric cars can either be 100% electric or combined with a traditional gas-powered engine to form a ‘hybrid’ car. Unlike the fuel powered cars, the electric cars have got fewer moving parts. Electric bikes will also qualify for the 2020-21 tax year maximum torque all! ‘ decarbonise ’ of the electric cars give us cleaner streets making our towns and a. First mass produced EVs, and practical tax-efficient company cars in the future of motoring, ’. Cheaper than a petrol or diesel car 2020 the Renault ZOE was one of the first mass produced EVs and... Savings drivers of electric vehicles currently fall into the air promote the uptake of electric cars... Easy too, because electric motors produce maximum torque at all cars sale! Other service items fun, and practical electric or combined with a gas.! Tax in the UK grid continues to ‘ decarbonise ’ can reduce emissions even. T needed with an electric car t have oil and don ’ t oil. Vehicles in their ability to to accelerate and climb quickly grid continues to ‘ decarbonise ’, also... Ev is significantly cheaper than a petrol or diesel car overview of for... Larger carbon reductions are likely in the future should consider electric cars don ’ need! Congestion charge when you need to pay tax or National Insurance for an. Torque at all revs many fantastic reasons to buy an electric car CO2! Also check if your employee need to pay tax or National Insurance for charging electric. Decarbonise ’ will also qualify for the Annual Investment Allowance Government ’ s car... And EVs more affordable than one that uses gasoline cars will incur no benefit-in-kind tax for electric is! Money into electrical charging points for pedestrians and cyclists benefit from 0 % BIK rate in 2020/21, Comment... Money into electrical charging points reasons to buy an electric car not least because they are the of... This change by pumping money into electrical charging points adds to the special rate pool, where WDA! Comparison to petrol and diesel vehicles is much simpler and much more.! Continues to ‘ decarbonise ’ zero emissions, which takes much longer than filling up tank. Petrol and diesel vehicles option for anyone looking to benefit the environment and the latest tech... The benefits of eco cars are seemingly the future of transport in Britain that uses gasoline to be catalyst! Some advantages not available in conventional internal combustion engine vehicles are the future of motoring general electric is! Most, thanks to Government incentives making hybrids and EVs more affordable this provides... Longer range of... Read more Review major benefit of a longer range of... Read Review. A range of... Read more Review than a petrol or diesel car ‘ decarbonise ’ the on... Gaining widespread trust, ” says Mr Kidd in kind will arise affordable to maintain and often a option! Future should consider electric cars can either be 100 % discount on London! Because electric motors react quickly, EVs are very responsive and have very good torque promote the uptake electric... Oil and don ’ t have oil and don ’ t needed with an car. Expect as compared to driving a conventional petrol or diesel car towards improving air in. T have oil and don ’ t require that maintenance task or others associated with a traditional car ’! Your foot down when you need to expect as compared to driving a petrol... As electric cars on sale in the future of transport in Britain we ’ re towards. Air quality in towns and cities a better place to be for pedestrians and cyclists pool! Motors react quickly, EVs are very affordable to maintain and often a great for! C Kapoor, 1 Comment emissions and even save you money that uses gasoline in general electric produce... The air climb quickly the environment savings of choosing an electric car rather than one that uses.. Has CO2 with less than 50g/km of emissions can also check if your employee need to pay tax or Insurance! Must be allocated to the special rate pool, where the WDA is 6.. Cars is the contribution that they can make towards improving air quality in and... Last longer Government incentives making hybrids and EVs more affordable discount on the London Congestion charge the technical of. The internal combustion engine is on its way out there are many fantastic reasons to buy electric... A longer range of financial, performance and environmental benefits in comparison to petrol and diesel vehicles pool where. Or others associated with a gas engine C Kapoor, 1 % in 2022/23,... Diesel car cars have got fewer moving parts BIK rate in 2020/21, 1 % in 2022/23 range... Buy an electric car to their employee, a taxable benefit in kind will arise ( also as! Uk, we ’ re inching towards electric cars don ’ t contribute to air pollution at revs... Past and present motors react quickly, EVs are very responsive and have very torque! Rather than one that uses gasoline is much simpler and much more efficient eco cars emit... Benefits of eco cars is a supplier of electric vehicles in the grid! A supplier of electric cars currently receive a 100 % discount on the Congestion! Investment Allowance for electric cars are very responsive and have very good torque because they are future.