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

Another Lancashire Bodycare store to shut Nick Holloway of administrators Interpath

Another Lancashire Bodycare store to shut

16 Sep 2025

2

Family business relocates in Blackburn Tristar relocation

Family business relocates in Blackburn

16 Sep 2025

3

Taste Lancashire Producer Awards 2026 open for applications Taste Lancashire Producers awards

Taste Lancashire Producer Awards 2026 open for applications

15 Sep 2025

4

Stuart Buckley appointed head of sales and account management at Netcentrix Stuart Buckley

Stuart Buckley appointed head of sales and account management at Netcentrix

15 Sep 2025

5

New Blackpool office build named best in Lancashire Fylde View office

New Blackpool office build named best in Lancashire

15 Sep 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
Sub36 Networking - Follow the signs
Sub36 Deaf Village Social1200
Networking
17 Sep 2025

Sub36 Networking - Follow the signs

The Deaf Village, Blackburn, BB2 5EN

10:00 - 12:00

LBV124 September/October Launch Event
MBP Arc Cinema Preston Opening 205
Networking
18 Sep 2025

LBV124 September/October Launch Event

The Arc Cinema, Preston, PR1 2BL

08:30 - 10:30

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

Preston Tech Connection - The Ultimate Tech Quiz!
Preston Tech Connection Sept 25.png.png
LBV Hub Networking
16 Sep 2025 - 16 Sep 2025

Preston Tech Connection - The Ultimate Tech Quiz!

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:00

The Business Network Central & East Lancashire
LBV Hub Networking
17 Sep 2025 - 17 Sep 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

Your Business, Your Region: Making sense of devolution and Local Government Reorganisation
Chorley Council breakfast event new
LBV Hub Networking
23 Sep 2025 - 23 Sep 2025

Your Business, Your Region: Making sense of devolution and Local Government Reorganisation

Worden Hall, Leyland, PR25 3DH

08:00 - 11:00

Preston Freelancer Meet-Up: September
Sept Freelancer (1).png.png
LBV Hub Networking
23 Sep 2025 - 23 Sep 2025

Preston Freelancer Meet-Up: September

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Speed Networking with BNI
2.png.png
LBV Hub Networking
24 Sep 2025 - 24 Sep 2025

Speed Networking with BNI

Chorley Football Club, Chorley, PR7 3DU

16:00 - 19:00

The Marketing Meetup IRL: Lancashire - September
TMM Lancashire
LBV Hub Networking
25 Sep 2025 - 25 Sep 2025

The Marketing Meetup IRL: Lancashire - September

Chorley, PR7 2SL

18:00 - 20:00

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) drop-in day
MTD drop in session.jpg.jpg
LBV Hub Seminars
25 Sep 2025 - 25 Sep 2025

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) drop-in day

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) drop-in day, Blackburn, BB1 5QB

10:00 - 16:00

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