Thursday 29 September 2022

Tax savings on EVs for businesses

Tax savings on EVs for businesses

Businesses can now offer employees an electric vehicle (EV) at 30-60% of the price.

That’s according to the Electric Car Scheme, which has partnered with subscription car service Onto – to allow companies to access government tax savings on EVs.

Through a salary sacrifice model, employees can subscribe to monthly payments for driving electric at a largely cut-price fee.

This is because their employer has been able to take advantage of the tax savings from helping their employees go green.

Onto and the Electric Car Scheme will work to help more businesses take advantage of the opportunity, cleaning up their fleets, internal emissions and all for a fraction of the regular price.

The scheme also means people who may not have considered leasing an EV before for the full fee can now drive one far more cheaply; increasing the number of electric cars on British roads.

Companies were previously unable to offer this deal to employees, as the salary sacrifice was limited to long-term lease deals, meaning a huge level of commitment to the car, putting many off.

CEO of the Electric Car Scheme, Thom Groot, said: “More than 80% of employees in the UK want their next car to be an electric car and it’s only right that the government rebate for electric cars is made accessible to as many people as possible.

“Subscriptions have been a great way for people to try driving and owning an electric car.  Now, the Electric Car Scheme can help more people try electric car subscriptions and make this step as affordable as possible.”

If you missed our interview with Thom, as part of our EV & Charging Feature Week, you can watch it here.

Written by

Bruna Pinhoni

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