The company analysed the battery health of almost 5,000 fleet and private EVs, representing nearly 1.5 million days of telematics data, to explore how the latest battery technology holds up to the rigours of daily use.
Key Findings from Geotab’s Study
Average battery degradation rate of just 1.8% per year, a 22% improvement over the past five years
Best-performing EV models show only 1.0% annual degradation
High-use batteries do not show increased degradation rates
These results not only challenge one of the most persistent myths surrounding electric vehicles – the reliability and longevity of their batteries but also paves the way for accelerated adoption of electric transportation.
David Savage, Vice President for the UK and Ireland at Geotab, stated, “With these higher levels of sustained health, batteries in the latest EV models will comfortably outlast the usable life of the vehicle and will likely never need to be replaced.
“The fact is that a 1.8% decline in battery health is unlikely to have a significant impact on most driver’s daily vehicle needs, and this number will only come down further with new EV models and improved battery technology. People should feel confident that many current EVs are suitable and cost-effective to replace a range of light, medium and heavy-duty Internal Combustion Engine (ICE) vehicles.”
Implications for EV Adoption
The study’s findings come at a crucial time as both private and business consumers consider the switch to electric vehicles. For fleet operators, the news gets even better. High-use EV batteries do not degrade faster than lower-use vehicles, meaning fleets can get more value the more they drive. With battery technology continuing to improve and degradation rates decreasing, the value proposition of EVs becomes even more compelling.
A previous Geotab report found that two-thirds of vehicles in UK organisations are ready to go electric, with potential savings of £13,279 per vehicle over seven years when replacing internal combustion engine (ICE) vehicles with EVs. As Geotab’s latest research data shows, high-use electric vehicles do not show significantly higher battery degradation, meaning EVs offer better value the more they are driven.
ElectriX: Facilitating the Transition to EVs
As these findings bolster confidence in EV technology, ElectriX is at the forefront of driving the transition to electric mobility by offering tailored leasing options, making it easier for both individuals and businesses to adopt EVs. With flexible leasing solutions such as Business Contract Hire (BCH), Personal Contract Hire (PCH), and Salary Sacrifice Scheme, ElectriX is ensuring that EV adoption is not only accessible but also convenient. These options allow both businesses and individuals to enjoy the benefits of EVs without the upfront costs associated with purchasing.
In addition to these leasing options, ElectriX offers smart home charging solutions as an optional extra, allowing EV drivers to efficiently charge their vehicles at home with ease. This is complemented by our specialized electric car insurance, which is designed to cater specifically to the needs of EV owners, providing comprehensive coverage and peace of mind.
A Sustainable, Cost-Effective Future
As battery technology continues to improve and more data like Geotab’s reinforces the reliability of EVs, ElectriX is committed to supporting transition to electric as seamless as possible. Whether you’re a business looking to upgrade your fleet or an individual exploring greener transport options, our solutions are designed to suit every need. By providing the guidance, services, and expertise, we are making electric mobility accessible to all.
Make the switch to electric with confidence. Contact ElectriX today to explore our tailored EV solutions and join the electric revolution.
Are you ready to go electric?
Want to know if an electric car is the right choice for you?
Join in with our simple online quiz to find out more.
Simon Stacey brings a wealth of over 20 year’s experience from across the energy and technology sectors to his writing on electric vehicles (EVs). Currently, he is Head of Product at ElectriX where he leverages his expertise in digital and net-zero transformation to ensure the business stays at the forefront of innovation.
Why EV Leasing is a Smart Option Amid Upcoming Tax Changes
In a move that’s set to reshape the landscape of electric vehicle (EV) ownership, significant car tax changes are on the horizon. From April 1, 2025, EV drivers will face new financial considerations, potentially adding up to £600 per year to their motoring costs. However, this shift also presents an opportunity for savvy drivers to explore alternative ownership models, with Electric EV leasing emerging as an increasingly compelling option for both business and personal customers.
The New Tax Reality for EV Owners
The forthcoming changes coming into effect from 1 April 2025 will see electric cars subject to Vehicle Excise Duty (VED) in the same manner as their petrol and diesel counterparts:
New zero-emission cars registered on or after 1 April 2025 will pay £10 a year in their first year of registration and £195 a year from the second year onwards. Zero emission cars first registered between 1 April 2017 and 31 March 2025 will pay £195 a year, and the ones registered between 1 March 2001 and 31 March 2017 to pay £20 a year.
Luxury EVs priced over £40,000 will face an additional £410 ‘expensive car supplement’ in years two to five of ownership.
These changes apply to both new and existing vehicles, effectively removing the current £0 tax band for zero-emission vehicles.
EV Leasing: A Smart Solution in Changing Times
With two-thirds of all electric vehicles priced above £40,000, the higher road taxes, in addition to the initial investment, make switching to a zero-emissions vehicle less appealing. As the EV landscape evolves, leasing is positioning itself as an intelligent alternative to outright purchase.
Mitigate Tax Impacts: By leasing, you can potentially avoid the brunt of the new tax changes, as the leasing company often bears the burden of vehicle taxation.
Predictable Costs: With fixed monthly payments, you can budget more effectively, avoiding unexpected expenses associated with ownership.
Flexibility for Businesses: ElectriX offers tailored business leasing solutions, allowing companies to maintain a modern, eco-friendly fleet without significant capital outlay.
Lower Initial Costs: Leasing typically requires a lower upfront payment compared to purchasing, making it easier to transition to an EV without a substantial initial investment.
Access to Newer Models: ElectriX’s leasing options allow you to drive the latest EV models without the long-term commitment, ensuring you always have access to the most up-to-date technology and efficiency improvements.
The ElectriX Advantage
ElectriX offers a comprehensive range of vehicles, competitive pricing, and a customer-centric approach. Whether you’re a business looking to electrify your fleet or an individual eager to embrace sustainable driving, ElectriX offers leasing options that can be tailored to your specific needs.
With ElectriX’s leasing solutions, you can stay ahead of the curve, enjoying the latest in electric vehicle technology without the long-term commitments and potential tax burdens of ownership.
Contact ElectriX today to discover how our leasing options can keep you moving forward in the electric revolution, no matter what changes lie ahead on the road.
Are you ready to go electric?
Want to know if an electric car is the right choice for you?
Join in with our simple online quiz to find out more.
Driving Electric Just Got More Affordable: Used EVs Now Cheaper Than Petrol and Diesel Equivalents
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In a major win for electric vehicle adoption, the used car market has reached a significant milestone. According to the latest data from the automotive market data research organisation Cap HPI, the average price of a three-year-old used electric car is now 8.5% cheaper than an equivalent petrol or diesel model.
The data reveals that a three-year-old electric car could cost around £2,550 less than a comparable used petrol car priced at £30,000. Used EV sales surged by 71% in Q1 2024 compared to the same period last year, with over 41,500 pure electric cars finding new homes. The average value of a used EV at the same age and mileage has halved since September 2022, indicating a maturing market with more stable prices. Luxury models like the Jaguar I-Pace and Tesla Model X are now available for over £20,000 less than in summer 2022, while mainstream options like the Nissan Leaf can be found for under £10,000.
Chris Plumb, EV specialist at Cap HPI, explained that the growing availability of second-hand electric models is driving this demand as “motorists want to reduce their environmental footprint and make significant motoring cost savings due to high diesel and petrol prices.”
With the EV market continuing to evolve and prices becoming increasingly accessible, there has never been a better time to explore the electric vehicle options available.
At ElectriX, we’re committed to making the transition to electric driving as seamless as possible. Whether you’re an individual looking for a Personal Contract Hire, a business seeking Business Contract Hire options, or an employee interested in a Salary Sacrifice Scheme, our leasing schemes can help you drive into the future of sustainable mobility.
Not only do you avoid the volatility of fuel prices, but you can now access high-quality, brand new EVs at affordable prices.
But the benefits don’t stop there. As an ElectriX customer, you’ll have access to our all-in-one solution, which includes alongside your chosen EV lease, the provision options to add a dedicated home charging unit and a comprehensive insurance coverage to your lease package.
This holistic approach ensures a seamless transition to electric driving, removing the hassle and uncertainty that can sometimes deter drivers from making the switch.
As the market for electric vehicles continues to grow, ElectriX remains committed to offering innovative solutions that meet the needs of our customers, helping them to reduce their environmental footprint while enjoying the benefits of electric mobility.
Check out the latest offers on our website and contact the team today to learn more about how you can take advantage of the growing affordability of electric vehicles with our comprehensive leasing solutions.
Are you ready to go electric?
Want to know if an electric car is the right choice for you?
Join in with our simple online quiz to find out more.
Simon Stacey brings a wealth of over 20 year’s experience from across the energy and technology sectors to his writing on electric vehicles (EVs). Currently, he is Head of Product at ElectriX where he leverages his expertise in digital and net-zero transformation to ensure the business stays at the forefront of innovation.
Even though electric cars have been around for many years now, there are still plenty of myths and questions that pop up when it comes to thinking about switching to an EV. From how they’re built and how they work, to how long the battery will last and how to know which electric car is right for you.
These are all valid questions that can be answered for you by the team here at ElectriX.
So, let’s dive in:
1. Can you drive and charge an electric car in the rain?
Rain and flash floods seem to be more frequent and have become part and parcel of the great British weather. This means many of us are likely to experience challenging driving conditions due to adverse weather – at any time of the year!
A storm or sudden downpour can suddenly turn a road you know well into a new water feature – a temporary pond right in the dip that you’d usually drive through without a second thought.
Maybe it’s a problem you’ve encountered many times in a petrol or diesel-powered car. But what if you’re facing standing water in your brand-new electric car, for the very first time, with all those kilowatt-hours of electrical energy stored right underneath you. What do you do?
As a blanket rule, the AA recommends that you should never drive into flood water that’s moving, or deeper than 10cm (4 inches). If you think the water is safe to pass through, go slowly to avoid making a bow wave – a wave of water forming at the nose of the car as you move through it.
As for rain, the simple answer is yes, it is okay to drive and charge an electric car in the rain!
The batteries in electric cars are all sealed and isolated so it is very difficult for water to get into the battery. Electric and hybrid cars also feature fail-safe systems that automatically isolate electrical drivetrain components in the event of a collision or short circuit.
You can feel confident that the charging components have also been built with wet weather in mind, so there’s no risk when it comes to charging. All charging points and chargers (public and private) are waterproof and electric cars are made with electrical safety as a top priority, so you can charge your car in the rain, go through a car wash and even drive through puddles, just as you would with a petrol or diesel car.
2. Why don’t electric cars have solar panels?
When you think about sustainability and being environmentally friendly, solar panels and solar energy likely come to mind.
There are some electric car models that do use solar energy to power selected components. But currently, these two low carbon technologies have not been fully combined and there are no EVs on the market that are powered exclusively by solar panels.
The surface area of a car on which to fit enough solar panels is just not big enough. It would need around 8 or 9 solar panels to provide enough solar energy to run an electric car, and the average car would only fit 2 or 3 panels at the most.
The existing technology in solar panels would also not produce the amount of energy needed within a reasonable time frame (think days not hours for a full charge!). On average, a solar panel runs on about 20% efficiency, so the technology will have to improve dramatically to replace the current charging technology needed for an electric car.
While there are market innovators currently testing models with solar panels on (the Hyundai Ioniq 5 is one example) it is not likely to be rolled out to the electric car market anytime soon.
You can however, in many cases, power your car through solar panels on the roof of your house. But you will need to make sure you have the right equipment. That includes kit like a solar PV system, a solar-compatible EV charger and a solar battery storage system if you want to charge overnight. The amount of charge you will get depends on lots of different things, such as how much the sun has been shining and the mileage range on your car. But it is perfectly possible to use the power generated from your solar panels on your home to charge your EV, and even have spare energy left to sell back to the grid! It’s worth noting that while solar panels achieve peak performance in direct sunlight, they do generate electricity in cloudy and rainy conditions too.
3. Do electric cars have gears?
Many people think electric cars will be just like petrol or diesel cars, but one thing that makes them distinctive is that none of them have gears, they are all automatic.
Petrol and diesel cars have engines to power them and a multi-speed transmission (a gearbox), which needs to build up power. Top speeds are achieved in the high gears once momentum has been built.
Electric cars are powered by electric motors instead. These motors provide a consistent amount of power, allowing EVs to accelerate very quickly without the need to move through several gears. It’s a myth that electric cars are slow – they are still very fast and can quickly achieve high speed!
Here are some other advantages of an electric car being automatic:
Improves efficiency – as no gear change is needed, power is delivered seamlessly from the electric motor to the wheels for instant power (torque).
Easier to maintain – with an EV there are less parts to maintain and therefore less risk of things breaking. Replacing a gearbox or a clutch on a petrol or diesel car can be very expensive.
Regenerative breaking – this is quite distinctive to EVs. Because they are battery powered vehicles, when you hit the brakes, energy is transferred from the wheels back to the car battery. This can help extend range as well as battery life.
Lack of engine noise – EV’s are notoriously quiet emitting little more than a unique hum.
4. How do I charge my electric car at home with no driveway?
If you don’t have access to private parking, how do you charge your electric car at home?
Cross-pavement charging solution
A cross-pavement charging solution is a purpose-built channel that can be installed on the pavement outside your home. It is designed to sit flush with the pavement to minimise the risk of injury to pedestrians. The technology also contains an electric vehicle charging cable that you can use to charge your electric car from the roadside.
There are also other solutions if you don’t have a driveway. One option is to use some of the 53,000 public electric vehicle charge points across the UK, including many free ones. There are some great apps, like ZapMap, that can provide you with real-time data on your nearest charge points no matter where you are in the country.
Many workplaces also now provide chargeable and free electric car charge points, as well as public car parks, supermarkets and retail parks, so these days you’re never far from a charge point even if you choose not to install a home charging solution.
5. How far can an electric car drive?
Another common myth is that electric cars can’t travel very far. This is not true and in fact, there are now electric cars that can travel further than some petrol and diesel cars!
The range for each EV is different as you might expect, because it really depends on the size of the battery.
For example, the BMW I4 GRAN COUPE has a 70-kWh battery and a range of around 300 miles.
At the other end of the spectrum, the Smart FORTWO ELECTRIC COUPE has a 17kwh battery and a range of around 81 miles.
The key when making the switch to electric is to decide how you will use the vehicle and what works best for you. If you just need a car for local trips or driving around town, then a smaller car with a smaller battery might be just fine.
But if you need an EV for longer trips, such as commuting to work or seeing family or friends that live further away, then it might be more important to you to have a car with a longer range.
One other important point to make is that the range of an EV can differ depending upon a range of other factors, such as hills, having the air conditioning on, or driving faster. To make it easier for people to understand, you will often see something called ‘Real World Estimate’ listed alongside the range to give a more accurate predication of what the total range might be.
Have a look at some of the special EV offers on our website for more information on range and you’ll also find both the BMW I4 GRAN COUPE and the Smart FORTWO ELECTRIC COUPE listed here too.
How do I find the right electric car for me?
If you’ve never had your an electric car before, the whole concept can seem quite daunting, especially as there are now more than 100 EV models on the market.
There are multiple options when it comes to owning an electric car, from outright purchase to used EVs, personal contract lease, salary sacrifice, and business leasing. You need to make sure you research each option to find what is right for you.
First, you should talk to an expert, like one of the team members here at ElectriX, who can provide advice on leasing options, and talk you through home charger options and provide EV insurance. Take a look at our ultimate guide to electric cars too for a bit more information and guidance. Once you have all the information you need, it’s time to decide which model of electric car is right for you.
Some of the things you’ll need to consider are:
What type of driving do you mostly do? Short trips around town, long-distance commuting, staycations across the UK?
What is your price point? Do you want lower end of the budget or prefer luxury?
How quickly do you need the car? Many leasing options can offer 30-day delivery, some models may take longer.
Where will you charge the car? It’s important to be completely informed about charging and what will work for you.
We have a range of electric cars to explore on our website, with key information such as range, cost and charge time for each EV. With so many options on the market, there’s never been a better time to make the switch!
Are you ready to go electric?
Want to know if an electric car is the right choice for you?
Join in with our simple online quiz to find out more.
Simon Stacey brings a wealth of over 20 year’s experience from across the energy and technology sectors to his writing on electric vehicles (EVs). Currently, he is Head of Product at ElectriX where he leverages his expertise in digital and net-zero transformation to ensure the business stays at the forefront of innovation.
As electric vehicle (EV) technology has advanced over the years, it’s become possible for holidaymakers who love a caravan holiday to hit the open road using an EV. Whether it’s a UK staycation or something further afield, there are now plenty of EV models on the market offering impressive towing capabilities.
If you’re thinking about an EV for your next towing adventure, there are some factors to keep in mind to make sure it’s a journey you’ll remember for all the right reasons. We might not be able to plan for the weather, but with a little bit of preparation, you can make sure that travelling between destinations goes smoothly.
In this article, we take a closer look at some of the pros and cons of towing a caravan with an EV, and consider why an electric vehicle might just be the perfect choice for your next road trip.
Can you tow with an electric car?
The short answer to this is yes, you can tow with an electric car. Here are some of the reasons why an EV is great for towing things like caravans:
Instant torque: Electric motors (found in all EVs) provide instant torque, which is advantageous for towing, especially when starting from a standstill or climbing hills as it helps to keep steady momentum and avoid jerking movements that can often happen in a petrol or diesel car.
Smooth acceleration: Electric cars offer smooth acceleration, which provides a nice stable towing experience.
Extended range: Many electric cars have regenerative braking systems that can help extend your range, particularly when going downhill. Kinetic energy that may otherwise be wasted is converted into electrical energy and returned to the battery.
There are some other considerations if you are planning to tow a caravan or anything else with an EV. Here are a few of them:
Weight considerations: The additional weight of towing affects the vehicle’s performance, handling, and energy consumption.
Reduced range: Because of the extra weight, towing a caravan can significantly reduce the driving range of an electric vehicle. It’s essential to plan trips with charging stations in mind to overcome this.
Charging infrastructure: While the charging infrastructure in the UK and abroad is continually improving, finding suitable charging stations that accommodate towing setups may need a bit of upfront planning.
How far can an electric car tow a caravan?
One of the biggest considerations when towing a caravan with an electric car is the range. Electric vehicles generally have a shorter range when towing compared to driving without a load. The additional weight and aerodynamic drag of a caravan can significantly reduce the distance an EV can usually travel on a single charge.
It’s very difficult to predict the exact number of miles an electric car can tow a caravan because there are also lots of variable factors that can affect the range, such as the season, the elevation of the roads and if you need to have the air con or heating on subject to weather conditions..
Here are some top tips to remember for towing with an electric car:
Plan Your Route: Ensure there are enough EV charging stations along your route, and consider the additional time required for charging.
Monitor Your Load: Keep your caravan within the recommended towing capacity of your electric vehicle.
Drive Efficiently: Make sure you drive as steady as possible to help maximise range and efficiency.
What electric cars can tow a caravan?
Lots of electric cars on the UK market are well-suited to towing. There are some fantastic options available if you want to consider the benefits of a lease with ElectriX through a Personal Contract Hire, Business Lease or Salary Sacrifice scheme. Here are some of the top contenders that are worth taking a look at:
1. Audi e-tron
The Audi e-tron offers a luxurious ride and a decent towing capacity. Its strong build and efficient electric drivetrain make it a reliable choice for towing.
2. Hyundai Ioniq 5
The Hyundai Ioniq 5 has a sleek and futuristic design, impressive range of up to 300 miles, and rapid charging capabilities. It’s a strong contender for those looking for an EV with towing capabilities, and also features a spacious, high-tech interior with advanced driver-assistance systems and sustainable materials.
3. Polestar 2
The Polestar 2 is a stylish and practical electric car with a good towing capacity for its class. It’s perfect for those who need a versatile vehicle that can handle towing duties without sacrificing performance.
4. Ford Mustang Mach-E
The Mach-E offers a good balance between everyday usability and occasional towing needs. It’s a great choice for lighter caravans and a fantastic-looking, stylish car.
Electric car towing capacity
Understanding the towing capacity of an electric car is crucial. Towing capacity refers to the maximum weight a vehicle can safely tow. Exceeding this limit can be dangerous and cause significant damage to your car. Here are those same five cars again with the specific towing capacity:
Audi e-tron: It can tow up to 1,800 kg, making it suitable for many mid-sized caravans.
Hyundai Ioniq5: Also has a towing capacity of up to 1,600 kg, offering a good balance of luxury and functionality.
Polestar 2: This car can tow up to 1,500 kg, making it a versatile option for smaller caravans.
Ford Mustang Mach-E: With a towing capacity of up to 1,000 kg, it’s suitable for lightweight towing needs.
It’s important to check the specific towing capacity of your chosen electric vehicle and ensure your caravan’s weight falls within this limit. Additionally, consider the gross vehicle weight rating (GVWR) and gross combination weight rating (GCWR) to ensure safe and legal towing.
Should you lease an electric car if you have a caravan?
Towing a caravan with an electric car in the UK is becoming increasingly viable as more models are introduced with substantial towing capacities. Brands such as Tesla, Audi and Mercedes-Benz have all brought vehicles to the market with huge towing capacities, proving the point that electric cars can be both powerful and practical for towing a caravan. But it’s important to make sure you check the towing capacity of any EV you are interested in before you get behind the wheel to ensure it will suit your needs and be suitable for a caravan you may already have or are planning to get.
While it’s important to consider the reduced range and the need for careful route planning if you are towing a caravan, the benefits of smooth acceleration, instant torque, and quiet operation can make electric cars an excellent choice for towing. When you also consider the growing availability of charging infrastructure and advancements in battery technology, the future of towing with electric vehicles looks even brighter (whatever the weather brings!). So whether you’re a seasoned caravanner or completely new to the world of towing, electric cars can offer a sustainable and enjoyable way to explore the open road.
ElectriX powered by LV= General Insurance, part of Allianz Group, is your one-stop solution for electric car adoption. We aim to simplify the transition to EVs by offering tailored leasing options, smart home charging solutions, and specialised insurance – all in one place.
Are you ready to go electric?
Want to know if an electric car is the right choice for you?
Join in with our simple online quiz to find out more.
Simon Stacey brings a wealth of over 20 year’s experience from across the energy and technology sectors to his writing on electric vehicles (EVs). Currently, he is Head of Product at ElectriX where he leverages his expertise in digital and net-zero transformation to ensure the business stays at the forefront of innovation.
What is BiK on electric cars and how does it work?
There are lots of good reasons to make the switch to an electric car. Doing your bit for the environment is one, lower running costs is another and there’s also the fact that there are some generous tax breaks you can take advantage of.
One of those is called Benefit in Kind or BiK in short, and it’s something that you may not have heard of before if you’ve not been behind the wheel of an electric car yet.
BiK tax is something that applies if a company provides one of its workers with some form of taxable benefit. One of the most common examples is the use of a company car – in fact, BiK is sometimes referred to as Company Car Tax. Other examples of benefits that are taxed under BiK include things like living accommodation, private medical insurance or fuel for your vehicle.
There’s a great list of company benefits on the government’s website if you want to look at all of them from A-Z!
Before we dive into some of the numbers, it’s important to understand how they’re calculated. There are three factors that come into play when working out Benefit in Kind tax with an EV :
The tax bracket you’re in
The value of the car
The CO2 emissions from the car
Using a combination of these three, there’s a simple calculation that can help you work out in pounds what your BiK tax will be. Here’s the formula:
Your income tax bracket X P11D value of the car X the BiK rate = BiK tax owed
1. How your level of income effects Benefit in Kind with an EV
The level of income you receive determines how much income tax you need to pay in the UK. There are currently three tax brackets, which are:
Basic Rate Taxpayer: If your annual income is within the basic rate band, you will pay 20% tax on the BiK value of the EV.
Higher Rate Taxpayer: If your income falls into the higher rate band, you will pay 40% tax on the BiK value.
Additional Rate Taxpayer: For those in the highest income band, the BiK tax rate will be 45%.
The tax rate bands do change so it’s important to make sure you stay up to date on the latest tax thresholds, but for the 2024/25 tax year, this is how they look in England and Wales:
Personal Allowance: Up to £12,570 is tax free
Basic Rate Taxpayer: taxable income between £12,571 up to £50,270
Higher Rate Taxpayer: taxable income between £50,271 and £125,140
Additional Rate Taxpayer: taxable income over £125,140
Tax brackets in Scotland work slightly differently, so please take a look here for more information on it.
2. How the value of an EV impacts Company Car Tax on electric cars
The second number we need for the Company Car Tax or BiK formula is the value of the car. This is sometimes called the P11D value of your car, which is the manufacturer’s list price, including any delivery charges and VAT at the time of registration. With most EV lease options, the vehicle is brand new and that’s how we operate at ElectriX with a range of EV brand-new models available.
The higher the list price of your EV, the more you’ll need to pay in BiK tax, but one of the big advantages with an electric vehicle is that they have a considerably lower BiK rate than petrol or diesel, which helps bring the overall cost down, by quite a lot too.
3. What are EV BiK rates and how do they work?
Company Car BiK rates for EVs are currently very low – just 2% – which was originally set by the government as part of a plan to encourage more people to drive an electric car. There are now more than one million EV drivers on UK roads and many of them will have taken advantage of this low BiK rate (as at August 2024)
The last government had plans to increase the BiK rate gradually, reaching 5% by 2028, but for 2024 it is still set at 2%.
Earlier we mentioned how BiK rates could be applied to a variety of company benefits, and that also includes vehicles that run on petrol and diesel. However, the BiK rate on these cars is much higher – often as much as 37%!
The higher rate reflects the fact that these cars are more polluting and there is a dedicated CO2 calculator on the HMRC website to help work out the tax bands for different cars based on their level of CO2 emissions.
Breaking down Electric Car Company Tax in numbers
To help you understand how electric car BiK rates are calculated, we’ve put together some scenarios using the standard formula below:
Your income tax bracket X P11D value of the car X the BIK rate = BiK tax owed
BiK Scenario 1:
Income Tax bracket: 20%
Value of car: £40,000
BiK rate: 2%
20% x £40,000 x 2% = £160
Here’s another scenario with a higher listed vehicle price and for someone in a higher tax bracket:
BiK Scenario 2:
Income Tax bracket: 40%
Value of car: £60,000
BiK rate: 2%
40% x £60,000 x 2% = £480
As you can see, the higher your income and the higher the price of your EV, the more you will pay in BiK tax. However, these figures are still small compared to the cost of Company Car Tax for someone driving a petrol or diesel car with the highest level of CO2 emissions, which currently attracts a BiK rate of 37%.
Here’s another scenario to bring that comparison of petrol and diesel cars to life, using the same example above of someone in the 20% income tax bracket:
BiK Scenario 3:
Income Tax bracket: 20%
Value of car: £40,000
BiK rate: 37% (Based on a car with CO2 emissions of over 170g per km)
20% x £40,000 x 37% = £2,960
Comparing the electric car BiK cost (Scenario 1) to that of a petrol or diesel car (Scenario 3), that represents a saving of £2,800.
Here we can provide a comparison using the same example as above for someone in the 40% income tax bracket who chooses a car with a P11D value of £60,000:
BiK Scenario 4:
Income Tax bracket: 40%
Value of car: £60,000
BiK rate: 37% (Based on a car with CO2 emissions of over 170g per km)
Compare both EV and ICE Scenarios to emphasise the cost saving for both tax brackets.
How to take advantage of electric Car Company Tax rates
If you’re looking to make the switch to an EV, ElectriX can help you make the most of the tax benefits that come from choosing an electric car instead of a petrol or diesel vehicle. BiK tax applies when you take up a Business Electric Car Lease, so if you’re a company owner or director then this could be the option for you. We also work with companies across the UK to help set up dedicated salary sacrifice schemes for their teams. It can be a great incentive to help retain staff and keep them engaged in the company, not to mention the lower costs and the sustainability benefits! A car obtained/procured through the Salary Sacrifice scheme is essentially a company car that’s leased by an employer, so remember, BiK is payable on the benefit.
Are you ready to go electric?
Want to know if an electric car is the right choice for you?
Join in with our simple online quiz to find out more.
Simon Stacey brings a wealth of over 20 year’s experience from across the energy and technology sectors to his writing on electric vehicles (EVs). Currently, he is Head of Product at ElectriX where he leverages his expertise in digital and net-zero transformation to ensure the business stays at the forefront of innovation.
How does electric car salary sacrifice work? An easy step-by-step guide
Leasing an electric car through salary sacrifice is an employee benefit that enables workers to lease a vehicle using their pre-taxed income. This can save them up to 40% on the cost of leasing a brand-new electric car. Along with being a very tax-efficient way to drive a great electric company car for the employee, an electric car salary sacrifice scheme also has several benefits for the employer too.
In this guide, we look at the easy step-by-step process of setting up an electric car lease salary sacrifice scheme for a business, outlining the benefits for both employers and their employees.
The benefits of an electric car lease salary sacrifice scheme
There are several benefits of electric car leasing through a salary sacrifice scheme. We have split them into benefits for employees and for employers.
Employee benefits of leasing an electric car through salary sacrifice
Leasing an electric car through a salary sacrifice scheme is the most tax-efficient way of driving an electric car, which can save the employee up to 40% on the lease cost when compared to a standard lease.
Employees leasing an electric car through salary sacrifice are able to drive a brand-new electric car for work and personal use at a heavily discounted cost, thanks to tax and National Insurance Contributions (NICs) efficiencies.
There are no up-front payments or credit checks needed, as there would be with a personal lease or other kinds of car finance.
If the company chooses the relevant option, the monthly payment can also include electric car insurance and maintenance, making it a hassle free way to lease a car.
Company car drivers must pay Benefit in Kind (BiK) tax, but with electric cars benefitting from BiK rates set at just 2% compared to up to 37% on petrol or diesel equivalents, the savings are even higher.
Employees who want to switch to an electric car for environmental reasons can feel great knowing their commute to work and play is helping improve air quality in their communities.
The benefits of an electric car lease salary sacrifice scheme for employers
Offering a salary sacrifice scheme can be seen as a major benefit to an employee, helping to attract and retain the best talent in the workforce.
Offering salary sacrifice means that employers pay less National Insurance Contributions (NICs) for all those employees who join the scheme.
There are often no set-up fees or running costs for employers offering an EV salary sacrifice scheme, with the leasing partner managing the processes and most of the admin (check with suppliers as offers may vary).
By leasing electric company cars, your business can contribute significantly towards your wider sustainability and net-zero goals.
What are the electric car tax benefits for those who offer or join a salary sacrifice scheme?
We’ve already mentioned that leasing electric company cars through a salary sacrifice scheme is tax-efficient, but here’s why:
With salary sacrifice schemes, the monthly payment for the electric car lease is taken from the employee gross pay before they are taxed, or other deductions are made from their salary. This means they don’t pay as much tax and have lower NICs.
A salary sacrifice scheme can help cut employer’s National Insurance Contributions (NICs) by around 13.8% and allow employers to claim capital allowances that reduce taxable profits.
As employees leasing electric company cars must pay tax, known as BiK, the great news is that BiK rates on electric vehicles are significantly lower than on petrol or diesel cars.
The process of setting up a salary sacrifice scheme for employers is very straightforward. With ElectriX as your partner, you can experience:
No fees or admin charges and no up-front costs for you or your employees.
Minimal admin requirements for your business.
Free surveys to assess the appetite for a salary sacrifice electric car lease scheme in your business, and help communicating the benefits to interested employees.
Many cars delivered in as little as 30 days.
Protect your organisation from liability if employees leave
ElectriX offer Early Termination Protection to cover you should an employee leave during the duration of their leasing agreement.
There are three simple steps to take before you can start providing a highly flexible electric car lease salary sacrifice scheme to your employees.
Other considerations when leasing electric company cars through salary sacrifice schemes
It’s always worth noting that leasing electric company cars through a salary sacrifice scheme will mean that employees receive less in their pay packet every month as a portion of their salary is taken away before other deductions are made. However, this is usually significantly outweighed by the tax benefits and other associated savings when compared with having separate bills for things such as:
● Monthly payments for a personal car lease or another kind of car finance repayments ● Electric car maintenance costs, such as servicing ● Electric car insurance ● Independent Home charger installation costs
It is also important to highlight that there are minimum wage thresholds for employees wishing to take part in a salary sacrifice scheme.
Some people worry that using an electric car lease salary sacrifice scheme could impact their affordability for financial products such as a mortgage application. The truth is that as long as the lender is made aware that the applicant is participating in the scheme, it should not impact a mortgage application.
Simon Stacey brings a wealth of over 20 year’s experience from across the energy and technology sectors to his writing on electric vehicles (EVs). Currently, he is Head of Product at ElectriX where he leverages his expertise in digital and net-zero transformation to ensure the business stays at the forefront of innovation.
The UK Car of the Year Awards (UKCOTY) are one of the most prestigious automotive accolades and a great starting point when looking at the latest car reviews for your next car lease or purchase.
Thirty leading motoring journalists make up the judging panel and decide on the best cars across seven categories from small car to family car and crossover to performance car. One of the winners in each category is crowned Car of the Year. And in 2024 that unanimous recognition went to the fully electric Kia EV9 SUV.
As a sign of the ever-growing popularity of electric cars and the choice of models now on offer from all manufacturers, electric cars dominated the shortlist and the winners list. The Hyundai Ionic 6 was awarded second place and 5 of the 7 category winners were electric vehicles!
Owning an electric car in 2024 couldn’t be easier. With many models of fully electric cars now available on the market. Buyers have a wide choice of cars to suit their needs, lifestyles and budgets. Whether you’re looking for a business electric car lease, a salary sacrifice scheme or a personal electric car lease option, we’ve got the whole package for you right here with high tech home charger and optional electric car insurance – not to mention an in-depth of knowledge of electric cars – will ensure you pick the perfect car for you. View the range of electric cars we have on special offer today.
4 of the top 5 electric car winners
Let’s dive in and learn a little more about the five EVs that electrified the judges at this year’s UK Car of the Year Awards.
Practicality, long-range and value for money put the Kia EV9 SUV 2024 at the top spot as UK Car of the Year, plus the World Car of the Year and World Electric Vehicle! The seven-seater is capable of up to 349 miles on a full charge, is packed with technology, comes with a choice of rear or all-wheel drive and is covered by Kia’s famous 7-year warranty.
Last year’s World Car of the Year is the year’s UK Car of the Year runner-up and 2024’s Best Family Car. Its streamlined, aerodynamic design provides a world of interior space, capable of transporting the whole family in comfort and style. Equipped with a 77kwh battery. It offers a long range of up to 338 miles, perfect for those family days out and staycations this year!
Winner of the executive car category, the BMW i5 really is The Business. Efficient Dynamics technology ensures the perfect balance of efficiency and performance, while the innovative interior means you’ll always arrive at your next meeting feeling refreshed. With up to 356 miles on a full charge, the BMW i5 is the perfect partner for your business road trips.
The Volvo EX30 may be a small electric crossover but it is big on performance. With up to 295 miles range, 0-60mph in 3.6 seconds and a rapid charging time of just 26 minutes. What better option is there for the environmentally conscious family that are always on the go! It has five seats, a versatile boot and smart storage solutions making the Volvo EX30 a great car for everyday family life.
At ElectriX, our experts make it easy to start your electric car leasing journey and find the right electric car for you.
Are you ready to go electric?
Want to know if an electric car is the right choice for you?
Join in with our simple online quiz to find out more.
Plug-in to a £350 grant for your electric car charger.
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To really enjoy the savings and convenience of driving an electric car, home charging is the way to go. But what happens if you are one of the estimated 40% of UK households who have either no access to a driveway or are in rental accommodation?
We’ve got some good news for you. Depending on your eligibility, you could take advantage of the latest electric vehicle charging technology and a £350 Government charge point grant. Introduced in April 2022, the grant provides up to a maximum of 75% off the cost of purchasing and installing your own cross-pavement charging solution. But don’t hang around because the grant is reported to end on 31st March 2025.
Eligibility criteria for EV Charger Grant:
You are a UK resident
You own and live in a flat
You rent a residential property, (Shared Ownership Scheme properties included)
You drive an eligible battery-powered or electric vehicle (even if it is leased or a company car)
Your home has its own private off-street parking space which may be co-located with the property such as an apartment courtyard or separated away, but this must be designated solely for your use at all times
You won’t be eligible if:
You have already applied for the grant or one of its predecessors
Are moving house or planning to move
Want a new electric car charge point (even if your current one is not compatible)
Want to move an existing electric car charge point to a new property
Live in a house that you own (only flats owners are eligible)
What is a cross-pavement charging solution?
A cross-pavement charging solution is a purpose-built channel installed in the pavement outside your home, this solution ensures that residents who don’t have access to a driveway are still able to own and charge an electric vehicle at home. It contains an electric vehicle charging cable that you can use to charge your electric car from the roadside.
The channel is designed to sit flush with the pavement to minimise the risk of injury to pedestrians, it should always be sourced from and installed by a professional to ensure its safety.
Why is the UK Government offering this electric car charger grant?
In 2023 electric vehicles accounted for 16% of the UK new car market, while there are now over 750,000 fully electric cars on the nation’s streets. This is why the UK Government is committed to speeding up the installation of electric vehicle charge points through a £381 million Local Electric Vehicle Infrastructure (LEVI) council fund.
In February 2024, payments to 44 councils had been approved, delivering thousands of additional charge points across England.
How do I apply for the electric car charger grant?
To apply for your own £350 Charge Point Grant, you should:
First contact an OZEV (Office for Zero Emissions Vehicles) approved installer.
Find a list of your nearest installers on the Government’s own website and simply enter your postcode for details.
Ask them to start a claim on your behalf.
If you’re happy with their quote, begin your order. They’ll send you an email with a link to an online form.
Complete and return the email to confirm your eligibility.
You’ll need to fill in the online form with your details. Once your eligibility has been approved, your installer will claim the grant on your behalf.
Check your final invoice.
Make sure your installation invoice clearly shows the total cost, minus the grant amount.
Are there any other solutions for charging my electric car without a driveway?
There are plenty of other places you can charge your electric car. In February 2024, there were over 53,000 public electric vehicle charge points in the UK, from Lands End to John O’Groats. While you will have to pay to use the great majority of these, there are still places where you can charge your electric car for free. Many workplaces now offer free electric vehicle charging for employees, while some public car parks, supermarkets and retail parks also provide this service.
Simon Stacey brings a wealth of over 20 year’s experience from across the energy and technology sectors to his writing on electric vehicles (EVs). Currently, he is Head of Product at ElectriX where he leverages his expertise in digital and net-zero transformation to ensure the business stays at the forefront of innovation.
Even though we’re almost halfway through the year, we know lots of people are still considering leasing a new car in 2024, so to help, we’ve compiled a selection of some of the best electric cars for lease around right now.
Whether you’re looking for an electric city car to zip around your local area in, a family car to handle everything from the school run to trips away, or a car that’s ideal for longer commutes and business travel, we have electric car lease options for everyone.
Best electric cars in the UK in 2024
The number of fully electric cars on UK roads hit 1.1 million in April 2024, and there are now more makes and models of fully electric cars available than ever before for drivers. With a wide range of electric cars to choose from when you’re considering your next personal or business lease vehicle, it can feel a bit daunting knowing where to start.
Choosing the right electric car to lease for your needs will depend on a number of factors, including:
Your budget – the ongoing monthly costs for leasing an electric car, plus the initial payment and things like insurance, charging and maintenance.
How you’ll use the car in your day-to-day life – how many passengers do you need to carry, is storage a priority?
How often you’ll be able to charge your electric car and how far you travel on regular journeys.
Whether you will use the car for personal or business use, or both.
These elements will all play into finding the best lease electric car for your specific circumstances. As electric car specialists, we’ve put together a list of the top five electric cars available for leasein 2024 for a variety of different situations to give you some great options. You can also learn more about electric car leasing.
Best lease electric cars for cities and towns
If you’re mainly going to be using your electric lease car for short trips around a city or town, to carry one or two people and without the need for lots of storage, a great option could be the Smart FORTWO ELECTRIC COUPE.
This two-seater is perfect for nipping around town, with its compact size making manoeuvring and parking a breeze. Having a WLPT range of 81 miles, this small car is ideal for those with short commutes and with a rapid charger (100kW), it takes around just 10 minutes to charge up to 80% if you need to top up as you go.
If a small family car is more your style for getting around, the Nissan LEAF HATCHBACK could be a really good option.
With a WLTP range of around 168 miles, the Nissan LEAF is a compact family car which brings all the benefits of being great around towns and cities, but it also has a range that makes it ideal for longer trips too, with the convenience of charging less often.
Best range electric cars
For those looking for the best range electric cars, capable of travelling over 250 miles between charges, a great potential choice could be the Hyundai KONA ELECTRIC.
With a WLTP range of 319 miles, this is the ideal car for family trips, days out or long commutes. Having a generous 466 litres of luggage space in the boot, this is an electric lease car that can easily hold your daily essentials as well as having space for all the family
Best electric cars to lease for families
If you have a big family, or need an electric car with lots of space and flexibility, the Kia EV9 could be a perfect option for your needs.
With seven seats and still room in the boot for everyday family essentials, this electric lease car offers the style, form and feel of an SUV, but with all the practicality and flexible space that families need. The EV9 also has a WLTP range of 349 miles, making it a great all-rounder that can handle anything from the school run to trips away from home. The Kia EV9 SUV took the top spot as UK Car of the Year, plus the World Car of the Year and World Electric Vehicle in 2024.
Best electric cars to lease for business use
When it comes to business car travel, comfort, convenience and style are all important considerations as you clock up the miles. A great option for those wanting to enjoy their business journeys in style could be the Polestar 2.
With a great WLTP range of 322 miles, this sleek and refined car is an excellent choice for those looking for an electric lease car that really delivers.
It’s worth noting that when looking at business electric car leasing, a lower BiK rate at just 2% means that going electric for your next company car is more tax efficient when compared to similar petrol or diesel cars.
Some of the other best electric cars for lease in the UK in 2024
With so many brilliant vehicles available, it’s really tough to refine the list down into the very best electric cars in the UK in 2024, so we’ve also included a couple more that absolutely deserve a mention.
With a WLTP range of 319 miles and the high-spec, high-tech interior that Tesla is renowned for, it is always a hit with drivers who are looking for an electric car for lease that combines style, comfort, technology and performance.
Another great option for those who want a sporty and fun drive could be the Volkswagen ID.5 COUPE.
Having a WLTP range of 344 miles and a surprisingly large boot for a coupe, the iD5 is not only a winner on the style front, but it’s also pretty practical too.
Help with choosing the best leased electric car for you
At ElectriX, our aim is to make it as straightforward as possible for you to switch to an electric lease car, whether it’s for your next company car or a personal lease, or you’re exploring your options with an electric car through Salary Sacrifice. We can help with not only finding the right vehicle for your specific needs, but also with home charger installation and electric car insurance too.
By choosing ElectriX, you can enjoy the benefits of:
Your brand-new electric lease car delivered to your door.
Simple and fixed monthly payments, that can also include maintenance, for your convenience.
Guidance and advice from our experienced advisors throughout the process.
Simon Stacey brings a wealth of over 20 year’s experience from across the energy and technology sectors to his writing on electric vehicles (EVs). Currently, he is Head of Product at ElectriX where he leverages his expertise in digital and net-zero transformation to ensure the business stays at the forefront of innovation.
