18 July 2022
Cost-of-living crisis could be softened by switch to an electric vehicle
As the cost of living continues to rise with fuel prices increasing exponentially, is the best way to counter this crisis switching to an electric vehicle?
This may seem like an expensive alternative due to the higher initial purchase price of new cars, but with company salary sacrifice schemes becoming more widely available, the cost benefits are becoming more accessible.
Many fleet management companies are now able to offer a large range of electric vehicles at a range of price points to ensure inclusivity for all employees. According to a leading industry body, a 20% taxpayer with access to an electric vehicle via such schemes could save up to £2,000 per year in Benefit-In-Kind (BIK) tax.
For the average motorist, the cost of personal mileage for an electric vehicle is in fact lower than its internal combustion engine equivalent, giving a saving of hundreds of pounds over a year. This is especially noticeable within company fleets, not only are the individual drivers saving money, but the larger companies are also able to start reducing carbon emissions as their fleets electrify while saving on payroll.
Switch to electric vehicles will not solve the cost-of-living crisis, but schemes like salary sacrifice can certainly offer employees a step in the right direction.
Read more about this story on Fleet News.