The prevalence of electric vehicles is increasing massively, and I felt it was time to revisit one off my favourite subjects.

We have noticed clients moving towards electric vehicles, issues still remain for many, the primary one is range. Although electric range is now respectable on many cars, it may still be a burden for some high mileage drivers. Topping up a battery may seem like hard work but a Taycan can be topped up from 5-80% in 20 some minutes and 62 miles of range can be added in 5 minutes. So with a little planning and a coffee break , this is now a viable option.

Charging points are increasing and their availability gets better. Work is still needed on this.

From a taxation point of view, the 0% benefit in kind charge has gone to be replaced by 1% rising to 2% next year and beyond. This is still fantastic value when compared to petrol and diesel powered alternatives.

From the company perspective you get first year allowances for corporation tax on new electric vehicles purchased but not used ones which attract normal allowances. This is a trap to be wary of as it can impact cashflow in relation to tax payments.

Financing of cars is a question we are often asked about. In simplistic terms you either buy the car for cash or on finance, or hire it. Contract hire is great for cashflows and gives you protection against a loss in value of the car. Our motor industry contacts tell us this and purchase deals with a guaranteed future value are really popular as it allays drivers’ concerns over expensive battery issues and cars being left obsolete by advances in technology. Interestingly both Tesla and Porsche offer 8 year guarantees on batteries so this may be a perception issue rather than a practical one.

One further point to consider with more emphasis on businesses green credentials, how do your customers, employees and suppliers feel this is reflected in your vehicles.