Care Home Owners - Why Electric Cars are perfect for your business

Why electric cars are perfect for Care Home owners

The recent Spring Budget  had many onlookers hoping for more to be done for the EV industry as a whole. However, the announcement was relatively silent on anticipated elements like VED (road tax), BiK rate for company car users, VAT on charging in the public network and grants for EVs in the new and used electric car industry.

The focus of the budget looked at the wider economy and infrastructure, with commitment to road improvements, energy and grid connectivity, a Green Industries Growth accelerator fund for low carbon manufacturing plus a continuation of full expensing on certain assets. In regards to the latter, it is still unclear whether or not leased pure electric cars will benefit from full expensing, which would mean that your 25% corporation tax would be offset.

The industry has provided some mixed reviews on the Spring budget, with many feeling that more could have been done to indicate a clear Governmental support on the ZEV mandate and the product which is aiming to meet this criteria.

Residential Home owners- the Tax benefits when using electric vehilce leasing

And businesses, like care homes, will be busy investigating the extent to which this type of transport benefits their individual circumstances. Some of which can be seen in this interesting accountancy article via Ownacarehome . For many care homes the transport offered to their staff, whether or not this includes the residents, will be considered in conjunction with budgets, taxation and CSR.

In addition, many residents will have family members who travel from afar and will themselves use EV transportation. As shown by the Black Swan Group  onsite charging infrastructure enables both the business and visitors access to charging apparatus.

Owners and financiers of the UK’s care homes, nursing homes and residential homes need to understand that running a fleet should be carried out in a proficient and practical manner Capital allowances, which are available on products like Hire Purchase and Contract Purchase, allow a business to have Writing Down Allowances (WDA).

The amount of WDA is attributed to the CO2 of the vehicle, with those emitting 50g/km of CO2 allowed a 6%WDA compared to the 100% for 0g/km of CO2. What this means is that a zero-emission vehicle can be completely written-off against Corporation Tax in the 1st year.

With many electric cars costing north of £25,000, this is a worthwhile benefit. For operating leases, like contract hire and finance lease, this is treated differently for tax. The monthly rental, including any initial rental, can be offset against Corporation Tax, although vehicles emitting 51g/km of CO2 can reclaim 85% of the rental against tax.

Running a Nursing Home? - EV car leasing can save your business money

While the level of tax you can claim is much higher on purchase vehicles, do consider that the deals on leasing are often far more competitive. In addition, the contract hire is a usership product, so this means the EV will be returned at the end of the contract. There is no risk of depreciation or ownership logistics.

For VAT registered businesses, up to 50% of the VAT can be reclaimed on the finance aspects and 100% of the VAT on any maintenance programme. With leasing you can include a service and maintenance package (funder-maintained) which allows the costs of the vehicle’s maintenance and tyres to be taken care of for a fixed amount.

From a fleet and road risk perspective, this means that some of the key obligations are taken care of. And for vehicles which go beyond the warranty period (usually 3 years), the business has complete piece of mind that there are no hidden costs or bills. Aside from these aspects, the care facility will need to organise fleet insurance, windscreen cover and a charging / fuel provision.

EV infrastructure at the care home is a full expensing asset. This means the investment into the charging infrastructure is completely tax deductible for the company. And the employees using this are not charged private fuel under HMRC rules, as electricity is not considered a fuel!

Whether or not you decide to provide free electricity for staff electric vehicles is a decision for the business / directors / fleet management. The actual running costs of the vehicle, as seen on our website, shows you the size of the battery and cost for the employee or employer to fuel it.

For those care homes with city and urban driving, especially on the low-mileage journeys, the BEV will be absolutely perfect. As our range calculator on EVs sets out, weather and driving style do influence the range available on the EV. Smaller commutes are much better on range capability than a motorway / highway for pure EVs.

And finally the running costs (or Whole of Life costs) are often more favourable with all-electric options. Overall the business will pay less on the fleet, while rewarding the company car fleet with more tax efficient solutions. As a zero-emission vehicle will only incur 2% BiK until 2025, for your employees they have a far more beneficial tax position on company car tax.

With many care facilities facing pressure on costs and staff retention, providing suitable transport would increase staff satisfaction but without breaking your bank balance. Many of the leading leasing deals in 2024 are coming in the form of lithium-ion tech, with the ZEV Mandate now forcing manufacturers in the UK to ensure at least 22% of their registered vehicles are zero-emission.

For the best help and advice on taking your care home into electric transportation, get in touch with our expert team here at e-car lease.

In terms of the car shown, the MG4 HATCHBACK 150kW Trophy EV Long Range 64kWh 5dr Auto (Pure Electric Vehicle), this is based on the following configuration:

•  Volcano orange Tri coat Paint
•  Leather style - Black with cloth inserts
•  18" alloy wheels with low wind resistance aero cover
•  Type 2 charging cable 

From just under £30,000 this RWD will have a 61.7 kWh usable battery which will offer 0 – 62 times of 7.9 seconds, 99 mph top speeds and 150 kW (or 201hp). Expect a combined winter range of 190 miles with warmer weather allowing for 260 miles – 225 miles combined.

On charging, the 6.6 kW AC max will allow 11 hour 0 – 100% charging times with the 142 kW DC maximum allowing 24 minute 10 – 80% times. It has a vehicle fuel equivalent of 148mpg. You can tow 500kg (Braked and Unbraked) with this EV. It has Bidirectional charging capabilities - 2.2kW AC V2L exterior outlets (this is a Type 2 adapter). 

For more information, check our MG4 EV section  

Browse our MG4 deals