‘Long needed’ car tax changes may require businesses to install electric charging bays04/13/2020
The “long needed” car tax breaks will help “incentivise” electric cars and will likely boost take-up of models as prices are slashed, according to EV experts Cenex. However, this could cause businesses to install new charging stations due to increased demand.
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Businesses should also assess who should get the priority at charging stations and how much it would cost to run the service.
Car tax updates introduced this April have been geared towards increasing the number of electric vehicles on the roads.
Benefit in kind company car tax rates have been completely scrapped from 16 percent to zero which will see EV upfront costs come into line with petrol and diesel models.
The expensive company car tax premium of £320 has also been removed which means all electric models regardless of price are now tax free.
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Petrol and diesel vehicles are also set for car tax rises under the scheme as changes to how vehicle emissions are calculated have been introduced.
This could turn motorists away from traditional vehicles into buying electric models which boast extra financial incentives.
However, this could put pressure on electric charging stations which may not be able to cope with an increase in demand.
Rob Anderon, spokesperson for electric car specialist Cenex said companies may need to make decisions on installing points if they begin to see a shift away from traditional cars.
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He said: “If companies start to see that shift, from current petrol and diesel company car users into electric vehicles, they’ll have to investigate the possibility of installing more charge points at work.
“In addition, if employees shift from cash for car allowances, or are new to the company car scheme, and select an electric car because of that tax benefit, then you have even more demand for charge points.
“Companies need to assess if they have the space to install new or additional charge points– be it standard or rapid – and then implement policies to manage those spaces.”
Mr Anderson also said companies will also need to manage the risk of some owners “blocking” the charging points once they are installed.
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He added: “The last thing you want is for drivers to hog a chargepoint once they have sufficient power, therefore blocking those who require a full charge.”
Research from electric car firm DriveElectric shows eight out of ten business people have said they would be likely to take-up an electric company car.
Data from motoring firm Lex Autolease also found concerns about a lack of charging stations was high one of the main reasons affecting purchases of electric models.
Cenex says companies should manage a potential rise in electric cars through installing new equipment.
Businesses should make staff aware of the new changes and the benefits to employees and identify those most likely to make the switch.
This will then identify how many charge points may be required to ensure demands can be met.
A system of charging motorists for using the power must also be set up to ensure companies are not hit with heavy costs themselves.
Mr Anderson said: “These tax changes will incentivise electric cars, helping the UK and organisations become more sustainable and achieve their net zero targets.
“But you’ve got to plan ahead to ensure a smooth transition for everyone.”
However, Cenex applauded the changes which the group claims was long needed for electric car owners.
Mr Anderson said: “This change has long been needed as the previous benefit in kind tax regime didn’t benefit low emission vehicle users.
“Now there’s a huge amount to gain and more company car drivers are likely to make the switch, if not for the environment but for the cash in their pocket.”
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