Why electric vehicles make sense for businesses and company car drivers
As acknowledged experts in electric vehicle development, Kia
offers a range of fully electric vehicle options which combine excellent range,
low operating costs and fast charging capabilities, with an exceptional level
of comfort, refinement and innovative technology for which the Kia brand has
become renowned.
This range includes the Kia EV6, including the GT version
which was World Performance Car of the Year Award 2023, EV9, winner of the
World Car of the World Car and Electric Car the of the Year Award 2024, as well
as the ultra economical Niro EV. All this comes with the peace of mind of a 7
year, 150,000km, warranty on both the vehicle and the battery.
Kia also offers practical and effective support when it
comes to charging, with easy home charging point installation, a unique Kia
Charge Card which provides access to a fast expanding network of 1,864 charge
points in Ireland and 696,000 across Europe and on-board technology that will
guide you to charging point locations.
All this makes a Kia electric the perfect choice as a
company car. However, making the switch to electric also opens up lots of
practical possibilities and benefits to both the driver and the organisations supplying
the vehicle.
There is a tendency to view the hugely significant benefits
of EVs in terms of greener motoring and reduced running costs, but there are many
more practical aspects to take into account, not least the possibility of
substantial tax benefits to both the company car driver and the organisation
that employs them.
Here is a simple
guide to why electric company cars make perfect sense:
Advantages for the
company car driver:
Reduced Benefit in
Kind taxation.
Company cars attracted a benefit in kind (BIK) income tax
charges for the employee, where the vehicle is also made available for private
use. However, this can be greatly reduced in the case of an electric vehicle.
To qualify a vehicle must be battery powered and not hybrid.
A BIK extension exemption now applies with partial relief in
respect of electric cars made available between 1 January 2023 and 31 December
2027. It is based on the open market value of the vehicle as follows:
€35,000 in respect of cars made available during 2023, 2024
and 2025
€20,000 in respect of cars made available during 2026
€10,000 in respect of cars made available during 2027.
Where the relief reduces the open market value of the car to
zero no BIK will apply.
What this means to the company car driver is that the
benefit in kind that they will be taxed on for an electric vehicle will be
substantially reduced, or in some cases nothing at all. This is an excellent
personal financial incentive to choose electric.
Fuelling
benefits
If a driver has a company car, there is often the
possibility of charging the car at their place of work. This means they do not
have to pay out on fuelling, they no longer have the inconvenience of service
station visits and they can save time on expense claims.
Installation of a home charger by the company can also offer
benefits in terms of making the charging point available to other vehicles in
the household and ensure the household is future proofed in terms of charging
access.
Personal Health
The zero tailpipe emissions produced by EVs are not only
better for the environment, but can also impact on personal health. If your car
is not producing harmful pollutants, then there is less danger of developing respiratory
issues, while it also means your vehicle is doing less damage to future
generations. Studies have also found that the reduced noise and simplicity of
driving an EV can also reduce stress levels.
Benefiting from the latest
technology
Most car manufacturers made the decision to concentrate
future vehicle development on EV models some time ago. It means that when you
choose an EV you are benefiting from the very latest innovations and your car
is making full use of the very latest technology.
Benefits for the
company
Reduced fleet
operating costs
One of the main benefits for any organisation in switching
its vehicle fleet to electric is the potential to substantially reduce fleet
operation costs. This comes in two main ways:
Energy use reduction- EVs
are far more energy efficient than petrol or diesel cars meaning that an
organisation can eliminate costly fuel expenses in favour of more easily
monitored energy charges. The Sustainable Energy Authority of Ireland estimates
that EV running costs can be as little as 20% of the equivalent diesel model.
Reduced maintenance costs- Although more technologically advanced,
EVs have far fewer moving parts than petrol and diesel vehicles, which
increasingly feature complicated emission reduction systems that can cause
reliability issues. This means there is less to go wrong on an EV and repairs
and servicing are simpler. The technology also means less wear and tear on many
components, especially in the braking system. All this adds up to lower long
term fleet maintenance costs.
Road Tax
With battery electric vehicles, your organisation can be
assured that it is paying the very lowest annual road tax cost of just €120 per
car. This can represent a significant saving over similar sized petrol and
diesel models and makes the administration process more straight forward, with
no differing road tax levels.
Grant incentives
Although companies cannot claim grants on company car
purchases, grants are available for qualifying vans and public service
vehicles. Organisations may also be able to claim financial grant assistance
for the installation of charging infrastructure.
Accelerated Capital
Allowances
One of the major incentives for making the switch to EVs for
businesses is the fact that they can claim an accelerated capital allowance on the
purchase. This is designed to encourage investment in energy-efficient
vehicles. It means, were as normally, a petrol or diesel vehicle would have
depreciation tax allowance spread over eight years, with an EV, a company can
deduct the full cost of the car from their profits in the year of purchase,
reducing taxable profits by the qualifying capital expenditure. This equates to
either the actual cost of the vehicle, or €24,000, whichever is the lower.
The accelerated capital allowance is also available on
charging point investments and is a major plus to companies and can be
especially useful to smaller business cash flow.
Improved fleet
monitoring.
Many organisations that have made the switch to EV have
stated that they now have improved monitoring of fleet operating costs and are
able to make targeted cost reduction improvements. The use of smart chargers
can provide a wealth of useful operating information to anyone operating a
vehicle fleet, regardless of size.
Positive Brand Image.
The use of electric vehicles is also generally very positive
for an organisational image, showing that the business is progressive and takes
its environmental responsibilities seriously. Increasingly environmental
considerations form a key part in customer motivation. Company vehicles are one
of the most visible indicators of how much attention that a company pays to sustainability
issues.
By switching to electric vehicles, companies can also make a
significant contribution to achieving net zero objectives.
Reduced emissions.
Last, but by no means least, electric vehicles produce fewer
emissions, which is not only positive for the environment now, but can also
help to ensure a cleaner future for generations to come.
All this make a very compelling case for choosing a KIA EV
as a company car. For advice on which vehicle would best suit your needs, or to
arrange a 48 hour test drive call the Stuarts Garages Kia sales team on 01 462
4100.