Taking your Pharmacy Electric in 2024 - Why a Chemist’s next fleet addition should be an electric car or van

A Chemist's next fleet addtion should be an electric car or van - taking your Pharmacy electric in 2024

The year 2024 is set to be a big one for Electric Vehicles (EVs), as this marks the commencement of the  UK’s ZEV mandate   which effectively is a prerogative for manufacturers to register (sell) at least 22% zero-emission vehicles within their total volume of sales. And this isn’t just about 2024, with each year this percentage will rise dramatically to 2030, where at least 80% of vehicles must be zero-emission! For many business this is going to present some fantastic oppourtunities; in particular more heavily discounted all-electric cars and vans, as many manufacturers push away from the traditional combustion functionality.

And this is without taking into consideration congestion zone and ULEZ zone changes in London plus towns and cities across the UK making emissions-based charging regimes a new part of their infrastructure (see the Clean Air Zone strategy for Bath, Birmingham, Bristol, Manchester and Sheffield ).

Culturally, politically and economically the UK is moving to lithium-ion battery technology but this doesn’t mean such changes for certain businesses, like a local pharmacy, shouldn’t be embracing this with ambition.

Moving from combustion (petrol or diesel) to all-electric for your cars is somewhat logical for most small to medium businesses (especially for limited companies). While cars used for delivery purposes will often be classified as “pool cars” , this is something you need to ensure is handled properly in accordance with your management and accountants (shared cars are treated differently for tax purposes). For company cars, or shared cars, many chemists and dispensaries will be assessing their fleet policy in light of simple facts:

•  Zero-emission cars (0g/km) enable 100% of the contract hire rental to be offset against Corporation Tax (for Co2 of 51g/km or higher this is only 85%);
•  Electricity is not considered a fuel for the fuel benefit purposes, whereas private fuel for petrol and diesel is a considerable tax implication;
•  For purchase products like Lease Purchase and Contract Purchase, a chemist can claim 100% Capital Allowances on a zero-emission vehicle. This is a considerable tax break;
• Full-expensing on plant and machinery, including electric vehicle chargepoints, means that the business can offset the full cost of any charging infrastructure against Corporation Tax;
•  Company Car Tax - for a car with private use, the 2% BiK threshold until 2025 means that a pure electric car is considerably cheaper for the end-user compared to a petrol or diesel equivalent (including hybrid). Using a company car is not a “free benefit” and the employee must pay an amount per month (at source) for this. Such tax is calculated in accordance with the vehicle’s value (P11d), CO2 (shown as g/km) and the employee’s income tax threshold.  

When making changes to your fleet, owner-managers and employees will therefore push towards battery tech over combustion because of the considerable tax propositions for limited companies. But that doesn’t mean that EVs are for everyone; you do need to conduct a fleet audit to ascertain that this is a suitable option based on your needs and requirements.

At e-car, we will discuss elements like real-world range, charging speeds, charging times, fuel costs and insurance, which ensures the Whole of Life cost can be properly considered. Not all electric cars are the same. Elements like workplace/domestic charge points, annual mileage, driving conditions and customer receptiveness will influence what solutions we offer. Using our “living with your” and innovative EVC™ you will be able to do this instantly. 

For any pharmacy using a van, if there is private use by an employee, do consider that taxable benefits will apply. For 2023/24, this is a benefit of £3,960 and a fuel benefit of £757 (if the company pays for fuel), which translates to a yearly income tax exposure of £943 for a 20% tax payer and £1,887 for a 40% tax payer.

As you can appreciate, a company van is somewhat better on tax than a combustion car. However, this doesn’t quite tell all the story for many pharmacies who will be reviewing petrol v diesel or electric v combustion when updating their delivery fleet.

For workplace charging, the OZEV guidelines which regulate grants for workplace charging still allow a £350 grant for up to 40 sockets for each business applicant, which means that on-site charging infrastructure is still supported by the Government ). And commercial vehicles / vans, do still benefit from the low-emission plug-in grant, which is as follows:

•  £2500 for a small van - which must be less than 2500kg on gross vehicle weight, emit less than 50g/km of CO2 and travel 60 miles without emissions; and
•  £5000 for a large van - which must have a gross vehicle weight of 2500-4250kg, emit less than 50g/km of CO2 and travel 60 miles without emissions.

And while all-electric vans have traditionally been expensive, what we have seen during 2023, is a substantial cost rise for petrol and diesel LCVs, due to product shortages which arose during COVID. And while some industries did reduce in productivity, many businesses did continue to trade, with many requiring a van, or some form of commercial vehicle, to carry out business.

Delivery services for our goods has only continued to become more popular, leading to changing cost demographics in the van world. But where many manufacturers can be applauded is for their proactive pricing adjustments for all-electric vans. In many cases, like for like comparisons will roughly equate (before taking into account charge point infrastructure investment). But where EVs do shine are for local business deliveries, with low-mileage stop start journeys being a perfect environment.

Many pharmacies offer free local delivery for their medications and many customers will be within a 5 mile radius of the premises. For EVs, even those with lower range abilities, smaller commutes on A-roads and at lower speeds are perfect for maintaining efficiency.

Higher-speeds and longer journeys do deplete your range more quickly. More efficient batteries means less charging and this ultimately allows for the cost per mile to be more advantageous than for a petrol or diesel equivalent. It is also worth noting that running costs of an EV fleet in this situation are often cheaper, with less maintenance required for the BEVs (simply less moving parts to service). While EVs will need tyres, brakes and suspension checking in the same way, the evidence is that many EVs will not need much (if any servicing) for the first 2 years or 20,000 miles.

And, one thing we cannot ignore, is that zero-emitting vehicles ensure that local businesses do not pollute their communities. Going green at the tailpipe is something on the agenda for many pharmacies  with the UK’s largest organisation, Boots, leading by example as early as 2019 . Keeping local towns and cities clean of pollution is now a key consideration for many councils and the Government, with the emissions-based charging discussed above being a prime example.

And one perfect car for your fleet or manager to consider for 2024, is the new Volvo EX30 SUV, which is starting to be delivered throughout the UK. This small family SUV will be available in three battery options which includes:

•  Single Motor -  (from £33,795) this RWD has a 49 kWh usable battery which will offer 0 – 62 times of 5.7 seconds, 112 mph top speeds and 200 kW (or 268hp). Expect a combined winter range of 145 miles with warmer weather allowing for 200 miles. On charging, the 11 kW AC max will allow 5 hour and 15 minute 0 – 100% charging times with the 134 kW DC maximum allowing 27-minute 10 – 80% times. A cargo volume of 318L is available with this car. It has a vehicle fuel equivalent of 145 mpg. You can tow 1000 kg (braked). It also has no V2L or V2G capabilities;
•  Single Motor Extended Range - (from £38,545) this RWD has a 64 kWh usable battery which will offer 0 – 62 times of 5.3 seconds, 112 mph top speeds and 200 kW (or 268hp). Expect a combined winter range of 190 miles with warmer weather allowing for 260 miles. On charging, the 11 kW AC max will allow 7 hour 0 – 100% charging times with the 153 kW DC maximum allowing 28-minute 10 – 80% times. A cargo volume of 318L is available with this car. It has a vehicle fuel equivalent of 142 mpg. You can tow 750kg (unbraked) or 1400 kg (braked). It also has no V2L or V2G capabilities; and
• Twin Motor Performance - (from £40,995) this AWD has a 64 kWh usable battery which will offer 0 – 62 times of 3.6 seconds, 112 mph top speeds and 315 kW (or 422hp). Expect a combined winter range of 190 miles with warmer weather allowing for 255 miles. On charging, the 11 kW AC max will allow 7 hour 0 – 100% charging times with the 153 kW DC maximum allowing 28-minute 10 – 80% times. A cargo volume of 318L is available with this car. It has a vehicle fuel equivalent of 142 mpg. You can tow 1600 kg (braked). It also has no V2L or V2G capabilities.

In terms of specifications choose from:

•  Plus - air quality system, heated steering wheel, climate control, 12” centre display, adaptive cruise control, BLIS with steer assist, collision avoidance, front cross alert, LED headlights, lane departure warning, oncoming lane mitigation, power tailgate, pilot assist, front and rear park assist parking camera, rain sensor, rear cross traffic alert, 18” alloys, hill start and descent control, alarm, heated seats and Harmon Kardon premium sound; and  

•  Ultra - this adds a 22kW AC upgrade, heat pump, tinted rear windows, 360 degree camera, 20” alloys, panoramic roof and power 4-way lumbar seat / power drive seat for driver

For more information on changing your Chemist to an all-electric fleet, just head to our website or call our team of experts. And if the Volvo EX30 is your car of choice for 2024, send an enquiry to us at:-

Browse our Volvo ex30 deals