London became an ULEZ in April 2019 and we are now beginning to see this spread to other cities, such as Bristol who have agreed to ban privately owned diesel cars in their city centre from March 2021, with a community charge being applied to commercial diesel vehicles. Charges relating to the ULEZ will noticeably increase costs associated with travelling to our city centres for many current company vehicles, on top of the road tax, fuel and running costs.
An electric vehicle may seem a daunting prospect as a company car, but perhaps not when you consider the reduction in running costs, not only in the day-to-day reduction of fuel costs, but also zero road tax. Other tax benefits include the changes to P11d Benefit in Kind (BIK) rate from 2020/21 of 0%.
It has been indicated that there could be additional restrictions which will impact on the choice of company car for 2020/21 and that 11 new bands for ultra-low emission vehicles (ULEV) may be introduced.
Therefore vehicles which have previously been included as ultra-low emissions will no longer be included. These bands are to be based on electric mileage which can be achieved without recharging or utilising the combustion engine in a hybrid vehicle.
We can help advise on which type of vehicle will meet your needs – contact us on email@example.com or 01242 308006.
Claire Cleevely, Director at Cleevely Electric Vehicles