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.

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.

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.

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.

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.  

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.

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.

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.

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.  

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. 

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.

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.