Speak EV - Electric Car Forums banner

1 - 20 of 24 Posts

·
Registered
Joined
·
11 Posts
Discussion Starter #1
For my next company car I am hopefullly going to go for a full electric car but currently there are no electric cars on the list and my FD is saying that due to the higher cost he does not see electric cars beig added because the company will have to pay more corporation tax.

Can any company car drivers currently running an electric car who have been in a simlar position tell me how they persuaded their companies to put electric cars on their list of cars which an employee can choose from?
 

·
Short term PHEV
2020 i3
Joined
·
646 Posts
Does the company purchase or lease the cars?

either way they need to look at the total cost including grants, tax benefits and running costs which should balance things out

if EVs still prove dearer then they could devise an employee contribution for the difference.
 

·
EV Convert
iPace HSE / 2019
Joined
·
628 Posts
For my next company car I am hopefullly going to go for a full electric car but currently there are no electric cars on the list and my FD is saying that due to the higher cost he does not see electric cars beig added because the company will have to pay more corporation tax.

Can any company car drivers currently running an electric car who have been in a simlar position tell me how they persuaded their companies to put electric cars on their list of cars which an employee can choose from?
"Pay more Corporation Tax". That can only be because you've made more EBIT, which any FD would think to be a good thing. You should ask him again...
 

·
Registered
Joined
·
16,858 Posts
This is horse crap from the FD.

If anything it would reduce is CT bill, initially. In most cases it would make no difference.
 

·
Registered
Joined
·
2 Posts
From experience, FDs generally need to be shown the numbers (i.e. £££). I'd look at the list of available cars at your company and compare their cost (total ownership cost) with the one of the fully electric car you fancy. Hopefully you'll find some cars on the list with higher cost than the car you want. This should be enough to convince the FD that your company can actually benefit (£££) if your fully electric car is included on the list. And you'll get extra points from the FD if you put everything on a nice excel spreadsheet.

Happy to help you do this. Just let me know.
 

·
Registered
Joined
·
3 Posts
The initial cost of the car may be higher than a petrol or diesel equivalent but you should make it clear to your employer that they will make savings on National Insurance contributions with a fully electric vehicle. Your employer must pay employer’s national insurance against the vehicle’s BIK value (which is currently set at 13.8%) and is reduced depending on the vehicle’s emissions, so is significantly less for electric vehicles and may offset the higher initial cost of the vehicle.

I'm sure if you lay out the facts and demonstrate that it makes financial sense, they will come around. It sounds like you already get a company car through work but setting up a salary sacrifice scheme for an electric company car is another great way that you and your employer can save money. May be one to pass on to colleagues who don't already get a company car. I go into more details on my website Tax Benefits for Driving Electric Company Cars | GoCharged™ if you want to read more about the various tax benefits of EVs.
 

·
Registered
Joined
·
73 Posts
I work for a large UK corporate that was planning on completely scrapping its company car scheme to save running costs. These costs were from own fault insurance claims (we have Third Party cover only), management of the lease contract/payroll relationship and early termination fees. It is was said that company cars give no benefit to majority of drivers due to prohibitive BIK and therefore they were instead going to give individuals a taxable cash allowance that they could use to purchase, lease, PCP a vehicle with their own personal arrangements. For ICE vehicles the logic was completely correct as, with a bit of shopping around you could find an ICE lease vehicle a better rate than that offered by the company car lease provider (Lex).

However, I persuaded the bosses that Company Car scheme should be kept open solely for BEVs for the following reasons:

i) We pride ourselves as being an environmentally aware company therefore offering BEVs as the only company cars is logical

ii) at this time when salaries are being frozen, benefits being cut, 0% BIK is one of the very few employee (financial) benefits that is being paid for by HMRC rather than the employer. So why miss out on this? The example I gave was : If an employee is given £500/month cash allowance (before tax) they would after 40% tax have only £300 remaining to lease a BEV Though their own personal private arrangement . If instead the company offered BEVs through the company car salary sacrifice scheme the same employee would have the full £500/month available to lease a BEV.

For my employer these arguments seemed to swing it and we now have a BEV only company car scheme

Good luck


Thanks
For my next company car I am hopefullly going to go for a full electric car but currently there are no electric cars on the list and my FD is saying that due to the higher cost he does not see electric cars beig added because the company will have to pay more corporation tax.

Can any company car drivers currently running an electric car who have been in a simlar position tell me how they persuaded their companies to put electric cars on their list of cars which an employee can choose from?
 

·
Registered
Joined
·
73 Posts
My employer has installed plenty of chargers at its main offices and is charging £0.25/kw. Some staff think this is quite steep considering they can charge at home for half this amount. However I think it’s fair enough as the company has the expense of installing and maintaining the chargers. What it does mean is that BEV drivers who often have chargers at home use them only rarely or perhaps if they are travelling between offices. We find that they are more often used on daily basis by PHEV drivers who use them for their daily commute to avoid using their ICE. The net result is that the chargers are well utilised but there is almost always one vacant. My conclusion is that if the company installs/runs the staff chargers at cost price everyone can benefit and no one has to be ‘out of pocket‘.
 

·
Short term PHEV
2020 i3
Joined
·
646 Posts
Oh ok many companies are letting staff charge for free and taking advantage of this tax free perk whilst they can.

Usage can be controlled by a intranet booking system, it works in some of the larger companies I’ve seen.
 

·
Registered
Joined
·
497 Posts
My employer has installed plenty of chargers at its main offices and is charging £0.25/kw. Some staff think this is quite steep considering they can charge at home for half this amount. However I think it’s fair enough as the company has the expense of installing and maintaining the chargers. What it does mean is that BEV drivers who often have chargers at home use them only rarely or perhaps if they are travelling between offices. We find that they are more often used on daily basis by PHEV drivers who use them for their daily commute to avoid using their ICE. The net result is that the chargers are well utilised but there is almost always one vacant. My conclusion is that if the company installs/runs the staff chargers at cost price everyone can benefit and no one has to be ‘out of pocket‘.
Are these chargers gathering dust? My wifes company have a dozen 3kw and 7 kw chargers that are completely free, and free EV charging has been a thing since she was the first with an EV in 2014. Now the last 12 months since the BIK change the company car park is mostly full of Tesla model 3's rather than BMW and Mercs dues to the BIK.
 

·
Registered
Joined
·
73 Posts
I wasn’t best pleased when our office chargers went from being free to £0.25/kw. Don’t get me wrong, I would much prefer them to have remained free as I know HMRC allow.

However, if they remained free I believe a) the company would not have installed them in the significant number that they have b) they would have been over-run with Model 3 owners securing their own ‘freebie’ rather than paying £0.05/kw on their perfectly good home charger.

The pay to charge model has meant that 85% of the chargers have been occupied everyday. They have only been gathering dust since Covid.

If the aim is to minimise emitted CO2/air-pollution I think it is working well because it means that big battery BEVs are being charged mostly at home and PHEVs are being kept running on electric for their full commute rather than running on ICE and being nothing other than an inefficient tax dodge.

I give the example of the paid for office chargers to the OP and others simply to illustrate that for a company to offer BEV or PHEV cars and charging infrastructure it doesn’t have to be company subsidised. Therefore it might stand a chance of gaining approval from the FD.
 

·
Registered
Joined
·
508 Posts
For my next company car I am hopefullly going to go for a full electric car but currently there are no electric cars on the list and my FD is saying that due to the higher cost he does not see electric cars beig added because the company will have to pay more corporation tax.

Can any company car drivers currently running an electric car who have been in a simlar position tell me how they persuaded their companies to put electric cars on their list of cars which an employee can choose from?
We run our own business and electric company cars for all is close to certain a no-brainer.
 

·
EV Convert
iPace HSE / 2019
Joined
·
628 Posts
We run our own business and electric company cars for all is close to certain a no-brainer.
We're there now and have been since 2017. Small organisation so easy to do. Unlimited free 7Kw charging for any employee who needs it (not just company car drivers) at every office.
 

·
Registered
Joined
·
11 Posts
Discussion Starter #15
Thanks to all for your comments. I have not been able to reply sooner as I have been busy working on a project at work to renew a major contract.

All company cars are leased and it is not possible to take a cash option.

My FD and MD both have BMW hybrids (3 series and 5 series) if I cannot get a full electric then I am likely to go down the same route, new X2 or 3 series touring.

If the cost of ownership is cheaper and from what I read electric cars are holding their values, I imagine that leasing costs should be better than petrol / diesel equivalent; providing the manufacturers are not subsidising the cars; which they may just do to sell remade stock.

I will certainly talk with my FD about not just the monthly cost to least the car but what is will cost to run an electric car compared to a diesel / petrol powered car.
 

·
Registered
Joined
·
130 Posts
Must admit, I am quite surprised by this whole thread. I was under the (clearly mistaken) belief that the concept of company car schemes had all but died out due to the ever increasing BIK rates being charged making them increasingly unattractive to employees, at least until the recent wipe out of BIK for BEVs. Certainly at each of the companies I have worked at, the only option for 20 years now was the taxable cash payment and associated mileage rates. The company car scheme was phased out at our place in 2001 when Gordon Brown changed the BIK rates to base them on emissions rather than mileage and I've never worked for a company since that offered company cars - always been the car allowance.
 

·
Short term PHEV
2020 i3
Joined
·
646 Posts
Most of the large companies still offer company cars as a 'perk' and even ignoring the ZEV rates being introduced there are still lots of people signing up for one. These schemes still work for a number of people e.g. those who do high mileages, those who don't take care of their cars, those who for one reason or another can't finance or insure their own vehicle and also the generally uninitiated who just want it all taken care of for them.
 

·
Registered
Joined
·
508 Posts
Must admit, I am quite surprised by this whole thread. I was under the (clearly mistaken) belief that the concept of company car schemes had all but died out due to the ever increasing BIK rates being charged making them increasingly unattractive to employees, at least until the recent wipe out of BIK for BEVs. Certainly at each of the companies I have worked at, the only option for 20 years now was the taxable cash payment and associated mileage rates. The company car scheme was phased out at our place in 2001 when Gordon Brown changed the BIK rates to base them on emissions rather than mileage and I've never worked for a company since that offered company cars - always been the car allowance.
Nope. e.g. UK's largest employer (the NHS) has had NHS Fleet Solutions available to its employees for yonks. It's very tax efficient for those top NHS earners (i.e. doctor consultants etc.), especially when taking into account their annual allowance pension contributions "issue" that was only taken care of earlier this year.
 

·
Registered
Joined
·
130 Posts
Nope. e.g. UK's largest employer (the NHS) has had NHS Fleet Solutions available to its employees for yonks. It's very tax efficient for those top NHS earners (i.e. doctor consultants etc.), especially when taking into account their annual allowance pension contributions "issue" that was only taken care of earlier this year.
Well to be honest, I can see the attraction for those who have the choice. 20 years ago we were offered £350 a month and a graduated mileage rate starting at 40p per mile, to drop out of the company car scheme and take the cash alternative. This was when a decent mid range D segment car was around 15k brand new and diesel was 75p per litre. All the numbers made it look a no brainer to take the cash allowance. I swapped out of a company car, which was a shed of a Nissan Primera diesel, (0 to 60 in around 5 minutes), and bought a lovely Seat Toledo, couple of months old, for 14k. I was the first person I knew who had an in built sat nav - in 2001.

Fast forward 20 years, and a decent car is 25k, fuel is £1.20 and has been as high as £1.40 odd, but car allowances have only gone up around 100 quid a month and mileage rates have barely moved for 20 years. It doesn't look such a good choice these days.
 
1 - 20 of 24 Posts
Top