The demand for UK leased company EVs doubled in first six months of 2020 after the latest tax incentive was introduced, according to research by Octopus Electric Vehicles. This specific growth has fuelled a total increase in EV registrations of 157% so far this year. The workplace salary sacrifice scheme allows employees to pay the lease amount for vehicles from their gross salary, leading to savings in both NIC and income tax.
As we have discussed before on this blog, benefit in kind taxation has changed in the UK, meaning that EV drivers are no longer taxed on the value of company car benefits, provided by way of salary sacrifice, if the vehicle is zero-emissions. Previously, a 16% tax rate was applied to the EVs, with an average of 27% charged on traditional fuelled vehicles.
For example, a higher-rate taxpayer can currently lease a Tesla Model 3 Standard Range Plus for 48 months for an average of £342 a month with zero upfront cost, including insurance, servicing and maintenance, and tire replacement. A similar traditionally fuelled car, such as an Audi A4 TFSI, would cost around £395 per month on a personal lease for the car only.
Fiona Howarth, CEO of Octopus Electric Vehicles, told Electrek, “EVs already make environmental and financial sense, and the many benefits of driving electric speak for themselves. They are fantastic to drive, are good for the planet, and have far cheaper running costs than petrol and diesel equivalents. Leasing an EV through our salary sacrifice scheme maximizes savings for drivers. With no upfront costs, generous tax benefits and an ever-expanding range of EVs on offer, it’s no surprise we have seen such strong uptake.”
If you are a business owner or an individual who is interested in knowing more about leasing options for electric vehicles, please get in touch. A member of our technical team would be happy to discuss this and help put a plan together for an electric future. Call us on 0141 280 8890 or drop us an email at firstname.lastname@example.org.
Additionally, visit our website evchargepoints.com to see our range of products and services, and to read historical blog posts.