Electric vehicles – government targets company fleets

Posted on Posted in Low-carbon innovations, News

Hazel Pettifor a senior researcher with the SILCI team reflects on a new government incentive aimed at boosting electric vehicle adoption within company fleets From 2020 employees who opt for an EV through their company car scheme pay no benefit in kind (BIK) tax in 2020/21 and a reduced rate for two years followingThe company car market remains a primary driver of new registrations for cars accounting for 8-9% of new vehicle registrations in 2018 (Department for Transport, 2019).  Adopting an EV through a company car scheme offers employees lowered risk, and no upfront costs, with the choice of ownership.  Studies also suggest the workplace is very positive social context for the diffusion of visible technologies (Cairns et al., 2017)More than 100 UK companies have now also pledged to increase the composition of electric vehicle within their fleets (Fleet Industry News, 2019)  

Cairns S, Behrendt F, Raffo D, et al. (2017) Electrically-assisted bikes: Potential impacts on travel behaviour. Transportation Research Part A: Policy and Practice 103: 327-342. 

Department for Transport. (2019) Vehicle Licensing Statistics Annual 2018. Available at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/800502/vehicle-licensing-statistics-2018.pdf. 

Fleet Industry News. (2019) No company car tax on electric vehicles, says government. Available at: https://www.fleetnews.co.uk/news/fleet-industry-news/2019/07/09/no-company-car-tax-on-electric-vehicles-says-government.