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Mint Your Own Business: Electric Vehicle - your new company car?

Following on from last week's benefits ideas, we thought we would bring some positive news when it comes to company cars or, more specifically, electric vehicles. 

The electric (and hybrid) car market is expanding quickly, with more cars due to hit the market in the next 12 months. Long gone are the days when Tesla was the only company offering a car with decent range (though we do still love them).

Electric vehicles do still carry a benefit in kind charge when purchased as a company car but the rates for this are decreasing again in April. An electric vehicle with a range of over 130 miles will no longer carry any benefit in kind charge for the year beginning 6th April 2020. 

We’ve been looking at the savings from moving to electric vehicles in Mint and there looks to be a significant reduction in ‘fuel’ cost (and maintenance costs): a full charge in a pure electric vehicle will give a typical range of over 100 miles and  will cost approximately £4 to £6 if charging at home and £8 to £10 if using public charge points. Whereas driving 100 miles in a petrol or diesel car will cost around £13 to £16 in fuel. 

There are also interest free loans available to assist you to purchase an electric vehicle. 

Interest Free loan for Scottish Businesses
Interest-free loans of up to £120,000 are available to Scottish businesses for:

  • Pure electric / plug-in hybrid vehicles (up to £35,000 for each new electric vehicle purchased)*
  • New electric motorcycles or scooters (up to £10,000 for each vehicle purchased)*
  • New electric / plug-in hybrid HGVs (Heavy Good Vehicles) (up to £50,000 for each HGV purchased; applications to be considered on a case by case basis)
  • Vehicle efficiency devices such as telematics systems 
  • Video and teleconferencing facilities

Interest Free loan for Scottish Residents 
If you are looking to buy an electric vehicle personally and live in Scotland then you can apply for an interest free loan of up to £35,000 to cover the cost of a new pure electric / plug-in hybrid vehicle and £10,000 to cover the cost of purchasing a new electric motorcycle or scooter.

Energy Saving Trust Grant
Energy Saving Trust can provide up to £300 funding towards the cost of a 32 amp home charge point installation. This is on top of the £500 provided by the Office for Low Emission Vehicles (OLEV).

There are so many benefits to having an electric car, not least reducing carbon emissions, so if you want more information please do get in touch for our full electric vehicle helpsheet. Just email getminted@mintaccounting.co.uk and we can send this out to you.