As part of the UK Government’s plan to achieve net-zero emissions by 2050, the Department for Transport (Dft) has announced that electric cars will be fitted with a green number plate as of autumn 2020.
The move comes as part of an initiative to encourage people to convert to zero-emission vehicles. With such measures being introduced from autumn 2020, businesses with a requirement for vehicles may now be contemplating investing in electric or hybrid vehicles. We look at some of the ways how leasing electric vehicles could benefit UK businesses.
1. Government introduced benefits
The green number plates will be used to more easily identify eco-friendly vehicles. With this change, drivers may benefit from a range of new schemes, such as reduced parking rates and exemptions to emission-zone charges.
2. Reduced running costs
The obvious benefit of a fully electric vehicle is the removal of petrol/diesel costs. Charging a vehicle at home generally costs less than refuelling and there are many free, public charging points. But with such an emphasis on green vehicles from the Government, the likelihood of increased free charging points appearing in public is also a possibility.
3. 0% Benefit-in-kind for company cars
According to the HM treasury, company cars generating no CO2 emissions and registered from April 6 2020, will be taxed at a reduced rate, meaning pure electric vehicles will be taxed at 0% for that year.
4. Corporate Social Responsibility
Going green reduces your business’ carbon footprint. Many consumers now take into consideration the environmental impact of the businesses they buy from too, so not only does going green positively impact the environment, it could also be good for building customer relations.
Shire Vehicle Solutions, our dedicated vehicle finance team, can help businesses to make the switch to eco-friendly vehicles. With a vast knowledge of the motor industry, we can help businesses to source and fund a range of electric/hybrid vehicles on complete finance service offerings such as Contract Hire and Hire Purchase. In doing so, your business could benefit from using electric vehicles without paying the large upfront costs that come with outright purchase, making it an eco-friendly and budget-friendly investment.
Our industry experts are available to discuss the different packages on offer and will provide you with a free bespoke quotation upon request. Call 01827 306 528 or fill in the form to enquire.
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All statements concerning taxation are based on our best understanding of current legislation. Levels and bases of taxation can change at any time. The contents of this guide do not constitute legal, tax, financial planning or any other advice. You should always discuss your choice of finance product with your accountant.
