As a car driver we are seeing the push for Electric Vehicle (EV) adoption by governments and councils with the creation of Low Emission Zones (LEV) and vehicle manufacturers phasing out combustion engines in the decades ahead. If a company car is within your remuneration package or, in some instances, larger organisations have salary sacrifice schemes. But for now, focussing on company car users, transitioning to EV or Hybrid is a serious consideration for a company car driver, so how do we balance the benefits?
Benefits for Employees:
- Convenience and Mobility: Having a hybrid company car provides employees with the convenience of personal transportation, allowing them to commute to work and travel for business purposes efficiently. It eliminates the need to rely on public transport or private vehicles, reducing commute time and offering flexibility.
- Cost Savings: Hybrid cars are known for their improved fuel efficiency, which can result in significant cost savings for employees. Employees can save money on fuel expenses with lower fuel consumption, especially for long-distance commuting or business travel.
- Environmental Sustainability: Hybrid cars produce fewer emissions and lower carbon footprint than traditional petrol-powered vehicles. By driving a hybrid company car, employees can contribute to environmental sustainability by reducing air pollution and greenhouse gas emissions, thus promoting a greener lifestyle.
- Tax Incentives: In the UK, tax incentives and benefits are associated with driving hybrid vehicles. Employees may enjoy reduced or exempted taxes, lower vehicle tax rates, and potentially lower company car tax (Benefit-in-Kind) due to the lower carbon emissions of hybrid cars. These tax advantages can lead to increased net income for employees.
- Enhanced Job Satisfaction: Providing employees with a hybrid company car demonstrates an employer's commitment to employee well-being and work-life balance. It can contribute to higher job satisfaction and employee retention rates, as it offers a valuable perk that improves employees' overall quality of life.
Benefits for Employers:
- Employer Branding and Attracting Talent: Offering hybrid company cars as an employee benefit enhances an employer's brand image as an environmentally responsible and forward-thinking organisation. This can help attract top talent who prioritise sustainability and seek employers with eco-friendly initiatives.
- Employee Productivity: Hybrid company cars can increase employee productivity. By providing reliable transportation, employers can ensure employees arrive at work on time, reducing the stress and potential delays associated with relying on public transport or private vehicles. This can lead to improved punctuality and overall productivity.
- Cost Control and Savings: Hybrid cars may have a higher upfront cost than traditional vehicles, but they can result in long-term cost savings for employers. Hybrid cars typically have lower fuel expenses, reduced maintenance costs, and potential tax benefits. Additionally, employers may be eligible for government grants or incentives for investing in low-emission vehicles.
- Corporate Social Responsibility (CSR): Embracing hybrid vehicles aligns with an organisation's CSR objectives. It demonstrates a commitment to reducing environmental impact, aligning with sustainable business practices, and meeting carbon emission reduction targets. This can enhance the company's reputation, stakeholder relationships, and social impact.
- Regulatory Compliance: Many countries, including the UK, have regulations and targets for reducing carbon emissions. By incorporating hybrid company cars into their fleet, employers can ensure compliance with these regulations, avoiding penalties or fines associated with high-emission vehicles. This proactive approach demonstrates responsible corporate citizenship.
Overall, adopting hybrid company cars in the UK in 2023 benefits both employees and employers, offering employees convenience, cost savings, and environmental advantages while providing employers with improved branding, cost control, and environmental sustainability.