Guide to electric vans and cars for businesses

Electric vehicles for businesses have grown in popularity in recent years due to their environmental benefits, lower running costs, and a range of government incentives.

Read on to learn more about the pros and cons of having an electric vehicle for your business, as well as an overview of some of the best electric cars and business vans.

The pros and cons of electric cars and vans for business

Electric vehicles have many financial and environmental benefits for businesses. However, there are some cost and performance downsides you will need to consider.

What are the advantages?

  • running costs are much lower – charging an electric vehicle could cost you a fraction of what you would usually spend on fuel

  • there are obvious environmental benefits – an electric car can save around 1.5 million grams of CO2, according to EDF Energy

  • there is a range of government incentives and tax benefits available for business owners who have vans and electric vehicles

What are the disadvantages ?

  • most electric vans will not be able to travel as far as diesel or gasoline vehicles without needing to be billed

  • you will likely need to install a charging station at home or at work, which is an additional cost to consider

  • the initial cost of purchasing an electric car or van for your business is likely to be higher than buying a gasoline or diesel vehicle

Can businesses get subsidies for electric cars and vans?

If you buy an electric vehicle for work, you may qualify for the government’s Low Emission Vehicle Connection Grant.

The grant covers cars, vans, mopeds, motorcycles, trucks and taxis. It is available to dealers and manufacturers who will remove the value of the subsidy from the price when you buy an electric vehicle.

The maximum grant for cars is £ 2,500, while the grant will pay a maximum of £ 3,000 for small vans, £ 6,000 for large vans and £ 16,000 for trucks.

Travel incentives for electric vehicle owners

If you have to travel to urban areas for work, there are many advantages to having an electric van or car:

  • in London, electric vehicle owners do not have to pay congestion charges, saving £ 11.50 per day (which could be around £ 200 per month)

  • similar ULEZ programs are planned in Birmingham, Manchester, Bristol, Bath and Oxford

Charging stations for electric cars for businesses

One of the reasons some business owners are unsure of whether to buy a van or an electric car is due to the cost and availability of charging points.

In response, the government implemented a home charging program for electric vehicles, which provides up to 75% of the cost of installing electric vehicle charging stations in private homes.

There is also the Workplace Charging Scheme, which offers vouchers for the cost of purchasing and installing an electric vehicle charging station at a workplace.

What are the tax advantages of having an electric vehicle for your business?

If you buy a vehicle for your employees to use as a company car, they will have to pay the company car tax and you will have to pay 13.8% national insurance.

The tax rate for in-kind benefits for employees owning electric cars and vans was previously 16 percent. However, it was reduced to zero percent in April 2020, dropping to one percent in April 2021 and two percent from April 2022 to April 2025.

This means that it is now much cheaper to have an electric company car. In addition, the in-kind tax rate for higher-emission vehicles is over 30 percent, which means that electric car drivers realize a significant saving.

Owners of electric vehicles are also exempt from the following obligations:

  • excise duty on vehicles

  • van benefit load

  • fuel costs

  • fuel tax

If you personally purchase an electric business vehicle (rather than as a company car), you can claim 45 cents per kilometer as business travel expenses, although the cost of an electric vehicle is estimated to be 4 cents per kilometer.

The environmental impact of electric company vehicles

The movement to encourage more people to use electric cars was spurred by the government, which announced plans to ban the sale of new petrol and diesel cars in the UK by 2030.

Ofgem research suggests that more than 6.5 million households are considering purchasing an electric or plug-in hybrid vehicle. Meanwhile, the Department for Transport estimates that there are currently around 500,000 ultra-low emission vehicles on the roads in Britain.

In addition to the environmental benefits, there are many other reasons for business owners to go electric, such as the government’s crackdown on gasoline and diesel vehicles, initiatives like ULEZ, and various tax incentives.

For direct-to-customer businesses operating in cities, there is a clear corporate social responsibility (CSR) benefit in showing that you are committed to reducing your carbon footprint.

And even if your business isn’t consumer-oriented, like a driver delivering manufactured goods, the amount of emissions saved on long journeys each year will likely be enough to get you thinking about the pros and cons of switching to it. ‘electric.

Electric vehicle charging point sign

What are the best electric vans and cars for business?

If you are considering purchasing an electric car or van for your business, there are many options to choose from. Here’s a look at six popular vans and electric cars for small businesses.

Three of the best electric vans

Nissan eNV200

This van has a “real” driving range of 160 km before needing to be recharged, as well as a 40 kWh battery. It is recommended for business drivers who drive few kilometers in the city and could cost you £ 30,000 and more.

Volkswagen ABT eTransporter

Manufactured by ABT and sold by Volkswagen, this van features an 82 kW battery and a claimed range of 82 miles. It will likely cost over £ 40,000 and is recommended for drivers who average 50 miles per day.

Mercedes-Benz eVito

This van allows drivers to slow down or coast while driving, with a range of 93 miles and an 85 kW engine. It’s known for its good storage and lack of fast charging, and buying it new will likely cost around £ 40,000.

Three of the best electric cars

Nissan Leaf

This car has a range of 168 miles and takes up to 18 hours to fully charge. It’s known for its heated front seats and steering wheel and costs just under £ 30,000 new.

Renault Zoe

With a 20 hour charge time, this car boasts a range of 179 miles. It has hill start assist and electronic stability control, costing around £ 28,000 new.

Audi E-tron

Although it takes 42 hours to charge, this car offers a range of 259 miles. It also offers a rear view camera and quick acceleration. To buy new it will cost at least £ 60,000.

Should you buy or lease an electric vehicle for a business?

There are good reasons to take either approach. A commercial electric car lease reduces the initial cost and gives you a better chance to keep up with technological developments such as the increased time between charges.

On the other hand, there are many financial incentives to purchase a professional electric vehicle, and the running costs after your initial investment are likely to be very low.

Whatever decision you make, it’s important to do your research and think about the long-term impact this could have on your business.

Are you considering the purchase of an electric vehicle for your business? Let us know in the comments below.

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