Advertorial feature from Go Ultra Low
Tax incentives for ULEVs
£10,000* savings per vehicle for fleets that ‘Go Ultra Low’
Companies can make substantial savings by opting for an ultra low emission vehicle (ULEV), which produces 75g/km of CO2 or less from the tailpipe.
“The Government is investing money in making it easier for companies to convert their fleets to ULEVs and a big part of this is tax incentives,” says Danny Alexander MP, Chief Secretary to the Treasury.
There are a number of ways in which companies can save tax by choosing a ULEV:
- Enhanced capital allowances for ULEVs have been extended until 2018. This can reduce the tax burden by£3,273 per car purchased instead of the diesel equivalent over four years (see table, right).
- National Insurance payments are significantly less for ULEVs. In the example used, this saves the company £2,369 per car over four years (see table, right).
- Electric vehicles are exempt from Vehicle Excise Duty, saving £110 per year compared to average new vehicle emissions of 128g/km (in 2013).
- Company car tax will be materially less for ULEVs than conventional cars until 2020.
- This year’s Budget widened the company car tax rates differential between conventional cars and ULEVs,expanding the incentive to purchase the cleanest cars. This can save individuals £6,868 over four years (see table, right).
Companies and private drivers also benefit from a Government grant of up to £5,000 off an ULEV and up to £8,000 off the cost of a van. There are grants of up to £900 or 75% of the cost of domestic chargepoints, which means that businesses or drivers who opt for ULEVs can charge them overnight at their home.
And once companies start using ULEVs
they’ll find that:
- Driving costs can be as low as 2p per mile for an ULEV – that’s a saving of £1,000 per year for an annual mileage of 10,000 miles.
- Companies that have vehicles entering the London congestion charge zone will also benefit from a 100% discount, saving between £10.50 and £14 per day.
There are now more than 30 ULEVs on the market, including 15 pure electric cars, four plug-in hybrid electric cars, three range extended electric cars and nine pure electric vans. Cars cost from £13,600 and vans from £16,300.
The total number of electric and hybrid vehicles purchased by fleets has risen by 47.49% over the past year, from 13,961 at the end of October 2013 to 20,592 at the end of October this year, according to figures from the Society of Motor Manufacturers and Traders.
Increased demand is driving an increase in residual values.
The ‘Go Ultra Low’ campaign, backed by the Government and car manufacturers BMW, Nissan, Renault, Toyota and Vauxhall, helps motorists understand the benefits, cost savings and performance features of the ULEVs available today, including 100% electric, plug-in hybrid and range-extended electric vehicles.
To find out more about ULEVs visit www.goultralow.com or follow the campaign @GoUltraLow