Why aren’t you running electric vehicles yet?

You may be surprised to learn that 40% of all the vehicles ordered via KeyFleet post lockdown have been electric – at least plug-in (PHEV) or traditional hybrid.

Electrification of vehicles just cannot be ignored anymore and in fact, considered correctly, can be a fantastic way for businesses to reduce motoring costs, potentially saving hundreds or even thousands of pounds each year.

But why the increased interest in electric? Well, this isn't an overnight sensation. Electric vehicles have been around since before Tesla boss Elon Musk was even born, but the international commitment to reducing greenhouse gas emissions and incentives through taxation for employers and employees alike, plus the development of cutting-edge technology, has allowed the electric vehicle industry to really plant a flag in the market.

In April this year the new 0% BIK (benefit in kind) tax rate arrived with much fanfare in the industry and preceded a queue of drivers looking to convince their employer to invest in this technology to allow them to reduce their monthly company car tax bill to zero.

Even drivers currently receiving a cash allowance, or reclaiming fuel using the AMAP rates (45/25p), should be better off by returning to a more traditional, but electrified, company car.

New car registration figures published by the Society of Motor Manufacturers and Traders show that for the year to date up to July there has been an increase in fully electric vehicle sales of 175% over 2019.

In addition, plug in hybrids are up by 59% and mild hybrids are up by 97% whilst petrol and diesel sales are down 47% and 61% respectively for the same period.

In fact, Tesla was the best-selling vehicle in May (albeit in a depressed market) due to innovations around contactless delivery in addition to their growing popularity.

At first glance, electric vehicles look more expensive than their counterparts – and that’s correct. But you must get past the acquisition cost and drill into the savings on running costs and taxation.

Not only do drivers currently benefit from a 0% BIK rate but businesses can save 100% on NI contributions, access 100% first year write downs on ownership or 100% capital allowances on lease rentals in addition to the undeniable fuel and also maintenance cost savings.

In our experience an expectation of £1,000pa savings for both the driver and the business for each vehicle on fleet is not unrealistic with high mileage, higher taxpayers saving even more.

Electrification isn’t for every business or every driver, but with the undeniable potential for savings for some users what is clear that every business should at least consider making the switch – and quickly.

  • To read this feature in full and access further Lancashire business news, advice and analysis subscribe to Lancashire Business View magazine or join the LBV Hub from just £2.50 per month. Click here to subscribe now.

Enjoyed this? Read more from Marc Mcloughlin, Keyfleet

Latest news

1

Management buyout at Suresite Group Steve Holden

Management buyout at Suresite Group

17 Oct 2025

2

Meet the influencers who have generated £2m sales for one company Helen and Richard Chalu new

Meet the influencers who have generated £2m sales for one company

16 Oct 2025

3

WHN strengthens position in prestigious legal guide Daniel Long

WHN strengthens position in prestigious legal guide

16 Oct 2025

4

Warden appoints new commercial manager to strengthen project delivery and growth Peter Heskine

Warden appoints new commercial manager to strengthen project delivery and growth

16 Oct 2025

5

Stockley's finds its sweet spot Stockley's front view

Stockley's finds its sweet spot

15 Oct 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

HR Essentials for pubs, bars and licensed venues
EventBrite NORi - 22nd Oct Webinar.png.png
LBV Hub Webinar
22 Oct 2025 - 22 Oct 2025

HR Essentials for pubs, bars and licensed venues

Online - Teams, Leyland, PR253XH

13:30 - 15:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

Women scaling up Blackpool Fylde and Wyre
LBV Hub Seminars
22 Oct 2025 - 09 Jan 2026

Women scaling up Blackpool Fylde and Wyre

The Small Business Academy, Blackpool, FY4 5JX

09:30 - 15:30

North West Business Expo 2025
https---cdn.evbuc.com-images-880456273-4862066883-1-original.20241022-105445.jpeg.jpg
LBV Hub Exhibitions
24 Oct 2025 - 24 Oct 2025

North West Business Expo 2025

Bolton Stadium Hotel, Bolton, BL6 6SF

09:00 - 15:00

Chamber Business Lunch – October
LBV Hub Networking
24 Oct 2025 - 24 Sep 2025

Chamber Business Lunch – October

Lancaster Golf Club, Lancaster, LA2 0AJ

11:00 - 13:30

Lancaster District Business Support Expo
Lancs-cham-logo.jpg.jpg
LBV Hub Networking
29 Oct 2025 - 29 Oct 2025

Lancaster District Business Support Expo

The Platform, Morecambe, LA4 4DB

10:00 - 15:00

Chamber Breakfast Networking – November
Lancs-cham-logo.jpg.jpg
LBV Hub Networking
06 Nov 2025 - 06 Nov 2025

Chamber Breakfast Networking – November

Porsche Centre South Lakes, Carnforth, LA6 1FW

08:30 - 10:30

Lancashire Police business update with The Police and Crime Commissioner
Lancs-cham-logo.jpg.jpg
LBV Hub Roundtables
10 Nov 2025 - 10 Nov 2025

Lancashire Police business update with The Police and Crime Commissioner

Lancaster Castle, Lancaster, LA1 1YN

14:00 - 16:00

AI, Creativity, and what it means to be human
2.jpg.jpg
LBV Hub Networking
11 Nov 2025 - 11 Nov 2025

AI, Creativity, and what it means to be human

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 20:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin