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Watson Buckle gets switched on about the savings from electric cars
One of Bradford’s innovative firms of accountants, Watson Buckle, is one of the latest companies in the city to invest in electric car charging points for staff and clients.
Last year the UK hit a major milestone as it saw the 200,000th electric vehicle leave a motor dealership and hit the British roads, which is why Watson Buckle has decided to install charging points at their office.
Watson Buckle have already been impressed with the savings that can be made and the firm’s tax specialists believe many more motorists and businesses could learn more about the savings eco-friendly vehicles can offer.
John Kinsella, Tax Director at Watson Buckle, said: “Many drivers are already experiencing the cost-saving advantages of an electric car: reduced fuel costs, reduced car emissions, improved performance and reduced tax rates”.
“Company cars are a significant drain on cash, which is why many companies have cut them as a benefit to its employees. Business owners can make significant savings by upgrading their fleet to hybrids or all-electric vehicles.”
A company car is always considered a benefit in kind (BIK) if it is given to an employee, which means the correct amount of tax must be paid. Tax is calculated based on the vehicle’s emissions, the list price, and the income of the employee who primarily uses the car.
For 2019-20, the rate of BIK tax for zero-emission vehicles was 16 per cent, with the rate dropping to between 2 per cent and 14 per cent from April 2020 depending on the type of electric vehicle.
John said: “The most tax-efficient cars will be those under 50g/KM, with further incentives for vehicles that can travel the furthest by electric-only power. We want to encourage our team and those who visit our offices to invest in hybrid or full-electric vehicles as part of our wider plans as a practice to ‘go green’.”
John added: “To encourage the use of electric vehicles, the Government has created an exemption from a benefit in kind for workplace charging of low-emission vehicles. The exemption covers the cost of electricity and the cost to the employer providing the facility.”
Although certain criteria must be met, John said that it could offer a substantial saving to businesses over the cost of fuel and could help to support employees to make the most of operating an electric vehicle.
Combined with the other cost-saving advantages of an electric car, such as longer service intervals, lower ‘fuel’ costs and savings for those required to travel into city centres operating emissions charges, switching to an electric vehicle makes sense.
“The technology in these cars is advancing at a rapid pace and concerns about range are decreasing, especially as a number of the latest generation models can travel up to 300 miles on a single charge and rapidly recharge within less than an hour”.
To find out more about Watson Buckle’s plans to go green, please visit https://www.watsonbuckle.co.uk/timeline/watson-buckle-is-going-green/