Electric cars 'could net business savings'

Date: 7/7/2011

Electric cars are "very, very favourable" in terms of being offered as a company automobile, according to one sector commentator.

Lem Bingley, author of the Greenmotor.co.uk blog, says that because a corporate vehicle is viewed by the government as being in lieu of salary, a national insurance contribution must be made for it on behalf of the employer.

However, he explains that because of their environmental credentials, electric motors have a benefit in kind rating of zero, which means that the business can save a significant sum by offering it as a company car.

"So, what we will probably see over the next couple of years, now that these well-engineered, attractive electric cars [are] coming on to the market, is that companies will be the ones which adopt them," Mr Bingley notes.

He adds that this is largely because of the tax breaks and incentives that have been implemented by the government to encourage this investment.

According to Dr Ben Lane, Managing Editor at nextgreencar.com, the trend for owning green vehicles will "undoubtedly" increase as the cost of petrol rises.

Posted by Nick Anderson