Taking your Bakery Business to Electric car Leasing in 2024 and Beyond

How the Cupra Tavascan EV could help take your Bakery Business to Electric Car Leasing in 2024 and Beyond

Moving the UK to electric is not just about the cars on our roads. This will be a bigger project which will encompass vans, buses, trains and maybe even planes, as the world pursues other forms of fuel and energy in order to achieve our carbon zero status.

While the e-car lease broker team are very much about cars and commercial vehicles (vans), one of our local councils has been innovating electrification in a slightly different field. Warrington Council have now implemented a double-decker bus, which will be yet another all-electric vehicle solution on their own fleet .

This will not be the last, with the Warrington Own Buses’ now going through a period of updating. Many of the existing diesel options are going to be replaced with the Volvo BZL electric double-decker options which are set to afford the local resident a number of key benefits including:

•  Silent Operation - electric buses emit limited noise and this will reduce any noise pollution;
•  Sustainability - electric buses are zero-emission from the tailpipe and therefore allow for environmental compliance (like Clean Air Zones) and a cleaner / greener future; and
•  Safety - the latest EV options are equipped with a plethora of safety features which protects both the passengers and the other road users.

Warrington has very much been at the forefront when it comes to an EV strategy. Not only are they improving the fleet infrastructure, they are also hosting a series of Climate Emergency Forums  to discuss changes in the area as well as committing to more  charge points and infrastructure  across the region.

Grass roots and local authorities play such a useful role in this cultural change, as this not only provides residents with the basic information and positivity of making the change but it also encourages more local businesses to innovate the way in which they operate their fleets.

The UK is renowned for its baking businesses and operations; none more so in areas like Warrington and in the north-west of the UK where we are known for pies, pasties, cakes and beyond!

From high street operations to food festivals, bakery companies are everywhere and with this success and expansion comes the consideration of vehicle choices. If your bakery is operated as a limited company then your company accountant should be helping you to consider your options on what vehicles to utilise.

While some baking operations will utilise both cars and vans, some smaller enterprises may just use a car / passenger vehicle. It is this option which the business owners and directors should really be considering for 2024 and beyond.

When you procure a new vehicle, you will have the choice to buy or lease it. The latter, contract hire, is where our expert team can assist your baking or confectionery business. When you lease a new car, you can claim back 100% of the monthly rentals against your Corporation Tax, as the vehicle emits 0g/km.

For VAT-registered business, you can claim back up to 50% of the VAT, so long as the vehicle emits less than 51g/km of CO2 too. Again, as a BEV emits no tailpipe emissions this more than meets the criteria. It isn’t just the vehicle which allows for tax efficiencies because a charge point installation at your business or domestic premises is also allowable against Corporation Tax under Full Expensing rules too.

While fuel (petrol or diesel) is subject to tax under private fuel, electricity is not taxed in the same way. Therefore your business can pay for the electricity which is “fuelling” your car and this will not bring about any tax implications. Taking into account increasing battery efficiencies in the vehicles, and driver education, and you have a situation where fleet savings and Whole of Life costs are more beneficial. This allows for more investment into other parts of your business.

On a personal level, company directors and employees will be more than interested in the BiK and company car tax position which EVs, like the Tavascan allow. Because HMRC apply tax to employees, owners or not, for using company supplied vehicles, it is worth noting that the emissions of the vehicles are what are determinative of your liabilities.

In brief, the more polluting and more expensive your vehicle is, the more significant the tax will be. When you look at leasing an EV compared to a petrol or diesel, you will soon see that there are hundreds to thousands of pounds of savings over the term. With the Government and HMRC committing to keeping BiK low on this preferential rate for electric cars for the foreseeable, this is something which should be considered.

But are electric cars actually exciting or good?

The naysayers of the automotive world have propagated ideas that EVs are somehow a sacrifice to vehicle enthusiasts lacking style, performance or practicality. New innovations, like the SUV crossover Tavascan, are a clear indication of a positive vehicle future. In the UK you can choose between:

•  V1 - from £47,340 this includes 19” alloys, ambient lighting, rain and light sensor, 3-zone air conditioning, keyless entry and go, heated and folding door mirrors, electric tailgate, dark tinted windows, 15” navigation screen 5.3” digital cockpit, wireless phone charger, bucket seats, rear view camera, dynamic steering, travel assist, adaptive cruise control, traffic sign recognition, intelligent parking assist;

•  V2 - from £53,835 this adds bucket seats with 12-way electrical adjustment, heated front seats, Immersive ambient lighting, 21” alloys, Matrix Beam with signature and Matrix LED, panoramic sunroof, dynamic chassis control, Sennheiser premium sound, top view camera and augment HUD; and 
•  VZ2 - from £60,835 this has 21” Etna alloy wheels and ventilated seats.

You can add a whole host of options such as the towing bike rack, the surf rack, a bike rack on the roof, roof bars, tow bar and a roof box. Key colours include the Tavascan Blue, Atacama Desert, White Silver and Basalt Grey.

But how will the new Tavascan electric perform?

•  VZ  - this AWD SUV will have a 77 kWh usable battery which will offer 0 – 62 times of 5.5 seconds, 112 mph top speeds and 250kW (or 335hp). Expect a combined winter range of 220 miles with warmer weather allowing for 300 miles – a 265 mile combined. On charging, the 11 kW AC max will allow 8 hour and 15 min 0 – 100% charging times with the 135 kW DC maximum allowing 28 minute 10 – 80% times. A cargo volume of 540L is available with this car. It has a vehicle fuel equivalent of 139 mpg. You can tow with this EV – 750kg (Unbraked) and 1200kg (Braked). It also has no V2L or V2G capabilities (so far).

Need more help and advice on taking your bakery business electric?

Just get in touch with our team on 01942 910 001 or by emailing us at [email protected]

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