Going Green Can Save you money
Why should you consider a green electric fleet can be to save the environment or because within the next 20 years the sales of petrol and diesel vehicles will end. Either reason can be the justification, but the UK is moving towards zero emission vehicles and businesses that make this move now will reap the maximum benefits. With these moves it is also inevitable that the costs of green fleet insurance will also come down.
- 1Private hire and reward polices are designed for chauffeurs, Uber drivers and couriers who have a designed person or package assigned to them for transport.
- 2Public hire for reward policies are for taxi drivers that can be hailed by anyone like a person on the pavement calling for a taxi.
Is there a tax incentive to go green?
The UK government has made it advantageous to go green with reduced taxes on both electric and hybrid vehicles. Because electricity is not considered a fuel, owners of electrical vehicles do not pay fuel duty tax.
In the 2020-2021 tax revision slated to take effect in the UK the BIK rate or Benefit of Kind tax will see the zero emission vehicles being taxed at 2% while the heavy polluting vehicles can be taxed up to 37%. The UPS are now using an electric truck fleet to delivery goods in Kentish town London.
Another advantage of going green with your fleet of vehicles is enhanced the capital allowance benefits from the UK government. Right now when you purchase an electrical vehicle the cost of it paid out by the business can be written off against the company’s taxable profits for the year of the purchase. This can be as much as £7,000.
Are grants available from the UK government?
At this time there are grants being given so individuals and businesses that purchase electrical vehicles. This includes funds for both cars and vans.
What types of vehicles are battery powered?
Other tax incentives include the following exceptions;
Why invest in a green fleet?
The leading reason is costs. By going green the cost of operating the fleet in both the power needed to propel the vehicles and their associated maintenance costs are lower than the standard vehicles now on the roadways.
Why should you consider a green electric fleet now instead of waiting is simple, because the government incentives, grants and tax benefits will not last forever. The government only uses financial incentives to get the public moving in the direction they want.
Once the move to going green is the norm, the incentives will no longer be needed and your chance to convert to a green fleet at the lowest possible price will be gone.