Company Cars: Should you Consider an Electric Vehicle?
January 30 2023 - Offering your employees a company vehicle is sometimes integral to the running of the business. Other times, it is simply a perk. Regardless of why you are offering a company vehicle to your employers, there are still a number of things that you will need to consider. One of the biggest considerations today is whether to opt for a petrol or traditional vehicle, or to go for an electric or even hybrid car. The question is, then, does an electric vehicle make a good company car? Read on to learn more.
Employers who choose to provide electric cars to their employees may be able to obtain some tax relief. This will depend on if their employees are able to use the vehicle outside of working hours and uses. Whether or not the write-off will be beneficial to your business will largely depend on the profits that the business sees. It is also worth noting that selling the car or getting rid of it will mean that you owe some tax back.
It might also be worth considering the preferences of your employees. There are several things that need to be taken into account. How far will your employees need to drive in their vehicles? Electric vehicles can be more problematic if your employees frequently need to drive long distances. In these instances, electric vehicles might not be the most efficient option. However, if they tend to drive locally or stick to populated areas, then an electric vehicle will be fine. The ethics of the business and the moral standing of the employees will also need to be taken into account too.
Fuel Expenses vs Charging Costs
The last thing to consider is whether your employees would be able to fuel their vehicles. You are likely going to need to install charging stations at your place of business. Again, there are government schemes and tax write-offs to take advantage of here. However, you will need to consider whether this will work for your employees or not. Britain is also facing a cost-of-living crisis which could make paying for your employees to charge their vehicles costly. Although you will need to weigh this up against the cost of fuel and mileage.
Choosing the Right Electric Vehicle
As an employer, you wouldn’t necessarily have to purchase the vehicles outright for your employees either. You could choose to lease the vehicles. For example, this electric car guide from ElectriX includes details on leasing, which could help you to make your decision. In addition to this, when choosing the right make and model, you will need to think about the needs of your business as well as the needs of your employees.
The Final Verdict
When it comes to deciding if electric vehicles will be right for your business, there are a number of independent factors to consider, including all of the intricacies of your business and its day-to-day operations. However, they are definitely worth considering, so be sure to do some research to work out which option makes the most sense for your business.