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Will a Drop in Company Car Mileage Increase Amount of EV Cars?
Surprise, surprise. Another day, another potential effect of the Coronavirus pandemic. Except this could be for the better, especially for the environment.
The way we work changed completely on the 23rd March and it doesn’t look set to ever return to normal. Instead we have been calling it a “new normal”. One of the ways things have already changed is face to face meetings, predominately being conducted via online methods such as Zoom and WebEx.
Why have we highlighted this aspect of working life though? Well, if you’re meeting less people face to face, there’ll inevitably be a decline in business mileage.
Figures recently released by the ONS discovered that nearly 2 million people were working from home, with a number of companies expecting to stay this way until the turn of the new year at least.
Lockdown has demonstrated that meetings can be done virtually, with a number of people involved. If this trend continues the way it is expected to do, more people will work from home more regularly and meet with clients less, causing company car mileage to drop significantly.
The CEO of LowCVP explained advised that due to this “the drivers behind the choice of company car will change and the benefits of electric vehicles will be even greater”.
If Tessler are making a push towards fleet cars, maybe you should too!
New fully electric cars are becoming more and more available to the market every year and the driving range of the vehicles are increasing all the time. The cut in miles driven by company employees means EV cars are becoming a better choice for both businesses and the environment.
Take Tessler for example. They’re making a real push for company fleets with their new Model 3 range, which has a standard range of 370 miles.
In June this year, nearly 9,000 pure electric cars were registered, which is a whopping 262% increase on last year. This coupled with the fact there has been such a drop in new diesel car registrations, as much as 60%, when compared to June last year, it makes it a no brainer for them.
We hear what you’re saying. What’s this got to do with tax?
Owners of hybrid cars have already been enjoying more auspicious tax rates than others, and those who have an a pure EV company car won’t have to pay any tax this year. If companies do stick with petrol cars, the consequence of lower business mileage will certainly lead to more painful personal tax implications.
Throw in the potential savings that could be made over the years companies have EV cars part of their fleet, they’ll be paying less on fuel / electricity, maintenance and insurance.
So, paying no tax, the fact that getting more eco-friendly vehicles on the road has been a high priority for governments across the world for a few years, and the effects of COVID-19 on the way people work, looks like it will make companies using EV cars more practical and cost-effective.