Let’s take a closer look at Electric Vehicles.
There currently lies 3 main challenges to the electric vehicle marketing development: range anxiety, affordability and cost and infrastructure availability. We have gathered some information to discuss how these challenges can be overcome and encourage more people to join the EV gang!
Starting with the first major barrier for the development of electric driving, range anxiety. This is the idea that you won’t have enough miles to make it to your destination without having to stop and charge.
How to overcome range anxiety? Plan. Your. Trip.
Even though the average daily journey in the UK is less than 30 miles and nearly every electric vehicle has at least 150 miles of range, it’s still wise to plan your trip, just to put your mind at ease if you suffer from range anxiety.
Before you start a long journey, check how many miles it is and how many miles you have in your vehicle. Download the well-know and trusted charge point locator platform ‘Zap Map’, this will tell you where every single public charge point is on your journey, that way you can estimate when and where you may need to charge.
Your EV will also have a function which notifies when you are coming up to service stations and other available public charge points throughout your journey.
Once you start getting to know your car and how you drive it, the range anxiety will quickly become a distant memory and you will realise how much you don’t have to worry about this!
Affordability and Cost
Another huge obstacle to overcome is the price of electric vehicles. Yes, electric cars are more expensive than a petrol or diesel car, but there are ways that this barrier can be defeated. First of all, there will be more and more pre-owned cars available which will instantly lower their value and make them more affordable. Secondly, as more people switch to electric vehicles the price variance will naturally decrease.
And of course, the major money saver, salary exchange. Salary Exchange schemes at your Workplace make electric vehicle driving so much more affordable and accessible to many people. Not just from the lease, but the ongoing operating costs such as servicing and maintenance, insurance, Benefit in Kind tax, and tyre replacement.
In his Autumn Statement, the Chancellor addressed any uncertainty around future electric vehicle tax rates with the welcome announcement that the government’s strategy of encouraging the transition to EVs will continue in the run-up to 2030.
The information below breaks down the plans for the future of electric vehicles in terms of tax:
Benefit in Kind rates for zero emission vehicles will increase consecutively by 1% per annum from April 2025 to 2028. This means that the tax rate will remain at 2% until 2024/25, increasing to 3% for 2025/26, 4% for 2026/27 and then 5% in 2027/28.
Even with the increase, the BiK tax for operating a battery electric vehicle (BEV) as a company car or on salary exchange over the next five years is still extremely low when compared to conventional internal combustion engine models
Another thing that has been announced is the AER rate (claimable mileage rate) for EV drivers using a company car or salary sacrifice vehicle for business purposes. In January 2023 this will increase from the current 5 pence to 8 pence per mile and will then be reviewed every quarter. Vehicle Excise Duty (road tax) will be re-introduced for BEVs from 2025, with EVs populating what is currently the 1-50g/km CO2 band.
Finally, infrastructure. Infrastructure availability is something workplaces have to think about when installing charge points as the more infrastructure that’s needed, the more expensive the install will cost. Even though this is something you don’t have to worry about as an employer here at Birchwood Park as we already have charge points installed, let’s look anyway.
There is now an infrastructure grant available for workplaces which covers 75% of the cost of installing the infrastructure needed for charge points to operate and for future charge points to be installed. You can get up to:
- £350 per charge point socket installed
- £500 per parking space enabled with supporting infrastructure
For more information on any of the topics discussed in this article, please feel free to contact us!
To get started on your transition to electric, contact us!
t: 0800 975 5900