Architects with a Limited Company - Why electric car leasing should be on your agenda for 2024

Electric car leasing for Architects with a Limited Company - On your agenda for 2024?

Moving your company fleet to an electric proposition is an exciting (albeit intriguing) process for many small businesses. For the UK’s architects who own and operate a limited company, or who work for one, their eye for detail on buildings can be equally applied for their company car choices.

As per the Architects Registration Board of the UK there are different approaches you can take, for example a sole trader, partnership or limited company (ltd). In each and every instance, an architect should be taking advice from an accountant and/or tax specialist to fully understand the implications. As per the ARB, there are other considerations like insurance, standard documentation and your premises which will need to be considered too.

The move towards electric transport is still progressing steadily notwithstanding some media conjecture and the usual naysayers. The March statistics are now in from the SMMT  and they do make for positive reading. In March 2024, some 48,388 BEVs were registered, with this type of fuel representing 15% of the UK’s market share.

This means that we have seen nearly 85,000 purely electric vehicles registered in the UK so far this year. We are tracking for around 350,000 new EVs on the road by the end of the year. And with the Tesla Model Y as the 9th most popular car in the UK for March 2024, it is fair to say that progress is being made and businesses, especially small owner-managed propositions, can have confidence that they are utilising a suitable product for their needs and requirements.

And do consider that the ZEV Mandate, which the UK’s Government has put in place, is something which all manufacturers are now reviewing in more detail. To assist your understanding, the data company New Automotive   have produced a guide to show you how each manufacturer is tracking on their legal obligations.

The UK’s Live ZEV Mandate Tracker - from New Automotive

This may help architects understand which manufacturer is best for an electric and which is taking their obligations more seriously. The financial rationale for moving into zero-emissions is somewhat obvious.

For the company / employer, there are some key advantages such as the ability to claim back 100% of the rentals on the lease against Corporation Tax (which would be 85% for more polluting options), the ability to claim 50% of the VAT on the finance rentals and 100% of the VAT on the maintenance aspects.

Any charge point installation is full expensing, so any infrastructure at home or work can be completely offset against Corporation Tax. When you are charging at work, the company can effectively pay for the electricity and the driver will not incur private fuel tax for a company car. In the case of petrol or diesel, the driver is liable for a hefty tax bill!

As many accountants will be identifying, for the driver (director / employee), the Benefit in Kind is beneficial for those using a zero-emission vehicle in the fleet. With just 2% until 2025, this means a nominal tax exposure on your personal tax when comparing against the petrol or diesel equivalent.

In many cases, the tax-saving can represent an amount equivalent to a rent or mortgage. While the vehicle’s value, and your personal tax bracket, are key to taxation, it is the emissions from the tailpipe which are the crucial factor. The cleaner the vehicle, the cleaner the tax!

An insight to Bidirectional charging

But what also needs to be considered is the Whole of Life savings and the synergy with your household and lifestyle. Something called -  Bidirectional charging - is now a conversation piece for the EV enthusiasts. To be clear, your car is a battery and this is something which is now linking to other batteries which are found in - 1) other cars; 2) homes; and 3) other electric items. Much of this is explained on your vehicle in the form of :

•  V2G / Vehicle to Grid - this allows your vehicle to send energy back to grid. If you had a full battery, and the local grid had an energy requirement, you can effectively remove energy from your battery and sell this to the grid;
•  V2H / Vehicle to Home - this enables the vehicle to work with your home, by allowing energy to be sent back into your household if required. For example, if your vehicle has charged overnight (on a cheaper tariff) and the household needs further energy during peak hours, the energy in your EV can be distributed to your household;
•  V2L / Vehicle to Load - this allows your vehicle to charge other electric and power appliances, for example an electric pump or laptop. In some cases, you can utilise a vehicle to vehicle synergy, where your EV could charge another EV.

Much of this is around your vehicle being able to receive and send energy to various sources. With solar panels at home and battery storage, more and more UK households are pursuing energy independence and electricity rationalisation. For example, the Kia products, the Niro and EV6, all come with V2L.

As per the website, your EV can power more than just the car, with ability to power home appliances and products, like an electric bike or a vacuum. With 3.6kW AC via an exterior Type 2 outlet and an interior UK socket (3-pin), you can do some amazing things with your Kia!

In terms of the car shown, the Kia EV6 ELECTRIC ESTATE 166kW GT Line S 77.4kWh 5dr Auto, this is based on the following configuration:

•  Matte Grey Paint
•  Suede/Vegan leather - Black
•  20" alloy wheels 

This RWD SUV will have a 74 kWh usable battery which will offer 0 – 62 times of 7.3 seconds, 115 mph top speeds and 168 kW (or 225hp). Expect a combined winter range of 215 miles with warmer weather allowing for 290 miles.

On charging, the 11 kW AC max will allow 8 hour 0 – 100% charging times with the 233 kW DC maximum allowing 16 minute 10 – 80% times. A cargo volume of 480L is available with this car. It has a vehicle fuel equivalent of 139 mpg. The Kia EV6 can tow 750kg (Unbraked) or 1600kg (Braked). This has EV  Bidirectional charging - V2L - and does have a heat pump.

For more information on our best Kia EV6 lease deals just head to:-