Why changing to electric vehicles is good for business and the environment
I get it, you’re a busy person. Far too busy to be standing next to a charging station for an hour before you can hit the road again. That’s exactly how I felt until I bought my first electric car but, as this is a property investment magazine and not an episode of Top Gear, I won’t bore you with the particulars. Instead, I want to tell you the benefits that going electric can have for you and your business.
The benefits for your business
Firstly, it can have a positive impact on your tax bill. Who doesn’t love/need that? If you buy a petrol or diesel vehicle through your business, you can only offset part of the cost against your corporation tax bill; however, you’ll also pay more tax generally as a benefit-in-kind (BiK) tax compared to an all electric vehicle. And this deduction is applied gradually over an extended period of time. However, when you buy an electric car, you can claim the full deduction in the same year that you bought it. As you can imagine, this can take a significant amount off your tax bill for something you need to purchase and use. Plus, if the car is for business use only, you can even claim back some of your VAT, which is another huge saving, especially if you’re leasing over time. Furthermore, electric cars are exempt from paying road tax. Every little helps, right? But as always, contact your accountant to see what’s best!
Secondly, you can make huge savings on transport costs. One of the stigmas around electric cars is that they are more expensive to buy when compared to their petrol or diesel equivalents. What a lot of sources don’t mention, however, is just how much cheaper they are to run. The average petrol or diesel car costs around ten to 14 pence per mile (and that was before fuel prices started to rise). Conversely, depending on how you charge an electric vehicle, it will usually cost you around one to three pence per mile to run – that’s a huge saving in fuel prices alone. Furthermore, many electric car manufacturers price their vehicles so that the overall cost is lower. And charging at home overnight means you always wake up to a full tank of “fuel”. Even charging at motorway services can take as little as 15 minutes, enough time for a loo break and a cup of tea.
This is without even mentioning the minimal number of repairs and services that electric cars require. Or how much cheaper they are to repair if something does go wrong. If you’re thinking about how much money you could save in running costs alone, think about how much you could save if you were to make them mandatory company cars for your employees? And because they’re great to drive, they make a nice little treat for any employee – besides, who doesn’t want a brand new car?!
The benefits for the environment
The final point means the most to me. Electric cars are just better for the environment, with zero emissions and a significantly lower carbon footprint. Basically, CO2 emissions are bad; they lead to an increase in greenhouse gases that damage the ozone layer. You might be too busy to think about this, but your grandchildren and great-grandchildren won’t thank you for the ignorance. We need to take action against the energy and climate crisis and every step towards this helps.
We can go way beyond transport. There are lots of ways you can make your business and activity better for the environment and almost all of those ways are also more cost effective than the alternatives, so you won’t find yourself out of pocket for doing your bit for the planet – I can cover these aspects in future articles. There is also the possibility of obtaining various grant funding, local authority and government support towards purchasing of electric vehicles.
I’m very passionate about the climate and work to make all our businesses as sustainable as possible as well as carbon negative. Follow my journey through the climate projects I’m working on to find out how you can get involved and help make your business better and more profitable by subscribing to my YouTube channel. Get in touch with me to learn more about how you can get involved.