How company car fleets can switch from fossil fuels to electric vehicles Car News

From March 1, 2021, the rates are as follows:

The good news for drivers is that these rates should cover the cost of fuel and electricity used. Unfortunately, they can also be generous enough that a driver could choose not to plug in at all, and still wouldn’t be paid out. Many PHEVs have large petrol engines and could claim 22p/mile which would result in high travel costs.

Although fares can be adjusted, this is not a simple solution, as Association of Fleet Professionals President Paul Hollick explains: “In general, our advice is to use AFR fares as a minimum to PHEVs, otherwise employers must track the number of kilometers driven. by every driver and vehicle to electricity and ICE, which is extremely difficult and time-consuming.

“In fact, in most real-world conditions, there’s a case for paying more than AFR, because most PHEVs will cost more than the current rate to operate.”

So how do you encourage drivers to plug in?

There are advantages to electricity being given unique tax treatment, which can help reduce costs.

Home charging is vital for BEVs and especially PHEVs, as it is the cheapest and most convenient way to charge. The UK government has increased funding for charging stations in apartments and rental properties, but recently stopped offering support to owners of single-occupancy properties (such as houses and bungalows). Employers can also pay to install chargers in drivers’ homes, with no tax implications.

Businesses can also claim £350 per socket to install chargers at the workplace and, unlike petrol or diesel, the ‘fuel’ provided does not count as a benefit in kind, even if it is intended for private use. This could help drivers reduce their reliance on more expensive public charging stations and limit refund claims.