electric cars

Your complete guide to ultra-low emission vehicles

Where is your fleet on The Sustainability Curve?

Every business with a fleet is already somewhere on The Sustainability Curve – the path from conventionally-fuelled vehicles to net zero carbon emissions. And although your green fleet transformation won’t happen overnight, evaluating your fleet’s fuel mix and reviewing your fleet policy can begin right away. 

For every business, there will be different needs and challenges ahead. But wherever you are on The Sustainability Curve, we’re here to guide you all the way to zero. Because, with the right plan in place and the green fleet experts behind you, your business will stay compliant – and ahead of the competition.

Reasons to go electric

REDUCE YOUR FLEET COSTS

Reduced fuel consumption and lower service and maintenance costs can contribute to a lower Whole Life Cost for an electric vehicle, despite often higher purchase costs.

PROJECT A POSITIVE IMAGE

What is the environmental impact of your fleet? Maintaining a positive corporate image could enhance your business' reputation and credibility by visibly operating zero emission vehicles.

BENEFIT FROM TECHNOLOGY

Enhanced battery technology is increasing vehicle range whilst reducing battery costs. The issues that once threatened the viability of electric vehicles are rapidly disappearing.

HELP IMPROVE AIR QUALITY

With the governments focus on poor urban air quality and the introduction of Ultra Low Emission Zones and Clean Air Zones, electric vehicles have the benefit of zero emissions.

PROVIDE ATTRACTIVE BENEFITS

Offering electric vehicles makes for an attractive proposition, as employees can benefit from innovative technology, more sustainable transport, lower BIK tax and reduced fuel costs.

SUSTAINABILITY TARGETS

Electric vehicles can be used to meet corporate social responsibility and carbon reduction targets when used in conjunction with clean electricity. As more “green” energy is available in the UK the overall carbon footprint reduces.

Fleet policy considerations

THE RIGHT VEHICLE FOR THE RIGHT APPLICATION

It is important that the correct vehicle technology / fuel type is provided for the right application.

For city centre driving with lower annual mileages pure battery electric vehicles (BEVs) may be best.

For high mileage motorway users diesel can still be the most cost effective and lowest CO2 option.

COMPANY CAR POLICY

It is important to review the company car policy to ensure employees have the opportunity to select the right vehicle technology / fuel for their needs. This choice should be based on suitability and not just on whether the vehicle has a low personal tax cost.

VEHICLE CHOICE LISTS

Consideration is needed for the vehicle choice lists. We recommend a Whole Life Cost (WLC) based choice list, however this must reflect both the company car policy and the fuel / business mileage reimbursement policy, i.e. if the HMRC advisory fuel rates and / or bespoke mileage rates are utilised these should be reflected in the WLC methodology in the choice lists.

FUEL POLICY

Ensure the company's fuel policy is suitable for electric and plug in vehicles. Often a pence per mile rate can be easier for dual fuel vehicles such as plug-in hybrid electric vehicles (PHEVs) and range-extended electric vehicles (E-REVs.)

Your local tax office should be consulted when selecting such rates as currently HMRC do not provide advisory fuel rates for plug in vehicles.

Fuel cards can present issues when using dual fuel vehicles such as PHEV and E-REV.

HOME CHARGERS

Companies may decide to provide home chargers to encourage the uptake of plug in vehicles but there will be benefit in kind due on the cost of the chargers (no BIK for zero emission vehicles) . Often the tax and fuel savings for the employee and the current low cost of home chargers means many leave employees to pay for their own home charging solutions.

WORKPLACE CHARGERS

Consideration is needed as to who can charge their vehicles at a company site. For company owned vehicles and company cars there is no Benefit in Kind (BIK) or National Insurance contribution (NIC) charge as of 2022 financial year, however private vehicles charged for free at work do still attract BIK and NIC based on the cost of the electricity used.

Further information can be found here.

DRIVING TECHNOLOGY

How is technology re-defining the business fleet? Read the latest insights and updates on present and future vehicle technologies.