Traditional petrol or diesel company car option; lease one, pay for two
An employer wants to spend around £40k (before discount) on a car for an employee. What’s the cheapest option for both parties?
If you can find one the answer, by a clear margin, is a fully electric company car.
We’ve reviewed 3 similar cars, two BMW 3 series (a diesel and a PHEV) and a Tesla 3. In the graph below we’ve added the employee and employer annual net cost together to give a total cost for comparison.
The Tesla 3 weighs in at a total average annual net cost over three years of just over £8k. The BMW 320D is getting on for double that at £15.3k.
The BMW 330e PHEV as a company car costs employer and employee combined just over £10.2k net.
If the 320D is provided by the employee who takes an equalised cash allowance and AMAP the total cost is £9.8k net.
This leaves you with a clear conclusion (based on these 3 cars); if you can find one and make it fit your needs, an electric car is the best option from a cost perspective. The second most cost effective option is to take an employee equalised cash allowance, but that’s only marginally more expensive than taking a PHEV as a company car.
Taking a traditional petrol or diesel as a company car is literally twice as expensive.
LATEST NEWS
Can we talk about Electric Vehicles?
Read a “car crash” of an exchange on LinkedIn this morning between an advocate of EV and someone worried about the supply of Lithium (and presumably other materials) for batteries. It was all there, disagreement yes, but conflicting data presented as facts, emotion...
PREVIOUS POSTS
Traditional petrol or diesel company car option; lease one, pay for two
An employer wants to spend around £40k (before discount) on a car for an employee. What’s the...
Can we talk about Electric Vehicles?
Read a “car crash” of an exchange on LinkedIn this morning between an advocate of EV and someone...
The UK car market 2019; how does it compare to the rest of Europe?
This is our third post on the size of the UK car market and how it compares. This time we’re...
Innovation in Electric Car Design
I took this photo at the Geneva Motor-show a couple of years back. It’s the all electric Microbus...
UK Car Market: How does it compare globally?
In this second post about the UK car market we’re sharing some stats about the size of the market,...
In the real world, is this one of the most environmentally friendly cars on sale in Europe?
In the real world, is this one of the most environmentally friendly cars on sale in Europe? Ladies...
How old is the average car in the UK?
How old is the average car in the UK? It’s 8.3 years and that’s been getting worse every year...
HRUX’s formal response to HMG’s consultation on banning petrol, diesel and hybrid cars
If you’d like to read our formal response to the consultation please follow the link below to...
Four hours of webinars
We’ve just recorded our 8th webinar. That means there are now more than four hours of material on...
Our webinar on HMG’s consultation into banning Petrol, Diesel and Hybrid cars from 2035 or earlier
Our latest webinar took place this morning, and the recording is below. Slightly more...
Government consultation on banning PHEVs/ICE cars
The data analysed on the slide below was taken from an article shared by the BBC under the heading...
Why employee communication needs a complete rethink…
Yesterday evening I ventured into the shopping centre in Milton Keynes, just to see how it was...
Why 25% saving is better than none at all
I commented yesterday on a post by Volkswagen AG announcing their new car transport ship which is...
Why we don’t need a scrappage scheme to encourage EV take-up
I have read a couple of posts from people today welcoming the news that we may be about to see a...
Moving the goalposts
In 2002 Gordon Brown changed the way company car tax worked to encourage fleets to focus on cars...
The importance of timely and focused communication with individuals at key moments
Congratulations to Michelle Cracknell for her brilliant article in Professional Pensions about the...
The future for company cars; the definitive view
We have reached a fork in the road for company cars. Only you know if your employees are happy...
Cash options and AMAP
It’s a common fallacy that cash options work best for employees with low business mileage, when in...
Car alternatives Alphabetti Spaghetti
It is frankly astounding how many acronyms we have to describe an alternative to a company car……...
Visas go Viral
Our sixth webinar took place earlier today; considering business travellers, immigration and a...
Will the early UK ban on ICE drive interest in hydrogen?
As we’ve often said in articles and posts, the key to the success of the battery electric car in...
Consultancy and the rules for the engagement
Morecombe and Wise, Little and Large, Punt and Dennis.... This morning our own Chandler and...
Electric fun time
Autocar’s review of the Renault Zoe, Peugeot e-208 and e-Mini should make compelling reading for...
Mercedes best car? It may be a PHEV…
We think PHEVs have a key role to play in the future of the car. We think HMG are fundamentally...
What is a business mile?
This week, Wile E Coyote helps us to explain how to avoid a £600k unexpected tax bill on a fleet...
Why PHEVs make so much sense for a company car driver
It can still be a little difficult to get information on the electric only range of a PHEV. The...
The accidental private fuel charge
We need to get Barry from his house to our local office to sign a contract (it's about a mile)....
Our P11D Webinar
We’re delighted to share the recording of our third free weekly webinar, which is brought to you...
Employment Taxes Voice
“Most people entering the tax profession like the fact things change – we have an annual Budget...
Company Car Tax Update April 2020
Thank you to all that attended our webinar earlier today entitled “Company Car Tax Update April...
COVID-19 and managing headcount costs
Our own David Chandler and Simon Horsfield of gunnercooke presented the first of a series of free...
Employee communication in these challenging times
In these challenging times, it’s clear to all organisations that communication with employees is...
esparx and the Travis Perkins interview by REBA
Delighted to be mentioned in REBA’s interview with Paul Nelson and Rob Walden at Travis Perkins on...
HRUX Annual P11D Report
HRUX are pleased to announce that our annual P11D report is now ready. If you’d like a...
Tale of Two Jags
Jaguar E-pace vs I-pace. How much CO2 have they emitted so far? These two Jags are built together...
Electric Future
I believe in electric vehicles. I believe in an electric future. However right now, at the risk...
The Chancellor’s Budget, Done and Dusted?
The Chancellor's Budget speech made me giggle, I’d give him 8 out of 10 for the delivery. For the...
Law Society Car Seminar
Delighted with the attendance at our company car seminar yesterday in the very grand setting of...
In 2035 will we Really all be in Electric Car?
I like cars, I think they are cool. I freely accept that you may not, and that’s cool too. And as...
Battery Supply Issues
So, battery supply issues have hit production of the Jaguar I-pace and Audi etron. Short term...
What’s Happening to Company Car Scale Rates?
Question. When all conventionally engine cars suffer company car tax at the maximum of 37%, what...
We Believe in the Road to Zero
We often joke with the audience at our company seminars that our typical client has one Range...
Company Car Seminar Roadshow
We’re bringing our company car seminar roadshow to London on the 4th of March, presenting from 9am...
Limits to the BEV take-up
Back in November I posted about how the limited availability of cobalt and other metals has the...
The 2035 PHEV Ban
There’s a lot of debate on LinkedIn and in the press about the 2035 PHEV ban this morning. Given...
HRUX announces the inaugural company car CO2 Olympics!
And stood on the podium we have: GOLD – anything with zero emissions (Tesla, Mercedes EQC, Mini...
The New Mini Electric
Autocar’s review of the Mini Electric is out this morning and makes great reading. This follows...
Where are all the unsold BEVs hiding?
1.6% of all new cars registered in 2019 were Battery Electric Vehicles (BEVs). That’s just 38,000...
Why are people picking on Toyota and Lexus?
Why are people picking on Toyota and Lexus for the phrase “self-charging hybrid?” My taxi home...
For better or worse?
Virtually every post I read on LinkedIn seems to claim a new UK sales record for EV, but Last...
Are company cars the problem?
Who looks at the picture above and thinks “company cars are the problem”? HM Government’s focus...
Threading the eye of the needle in the haystack
You’ve 15,000 employees and there are 26 of them that need to do something today, or it’s going to...
White lists or white noise?
Based on numerous conversations with senior HR folk it’s very clear that communication with...
Travis Perkins & eSparx
There’s a quiet revolution going on at one of our longest standing clients, Travis Perkins. Last...
The Cobalt Conundrum
You might reasonably argue that the case for electric vehicles is overwhelming. Trust me – 10/15...
Are there already under 800 thousand company cars in the UK?
The last set of figures released by HMRC showed that (provisionally) we were at 890k in 2017/18...
Is company car tax is too high?
We are constantly telling our clients that traditional company cars are, in many ways, the optimum...
What difference does 3 miles make?
What difference does 3 miles make? About £60 a month? The (brilliant) BMW 330e PHEV (SE) was...
An effective tax rate of 310% on a benefit-in-kind?
An effective tax rate of 310% on a benefit-in-kind? What could possible justify that - a...
A new benchmark?
I had a quick drive in a Tesla 3 and I was simply blown away. I had my reservations beforehand,...
Should you delay replacing company cars because of the new tax rules?
Should you delay replacing company cars because of the new tax rules? The answer is “it depends”,...
New company car tax rules
There was an understandable degree of excitement when HMG announced the new company car tax rules...
P11D Correct Data
HMRC have published today the P11D (corrected) data up to 2016/17 and provisionally for 2017/18....
ICFM Annual Conference
It was a huge pleasure and my privilege to address the #ICFM Annual Conference in Wembley on...
Anabella and Brenda
I want to talk about two company car tax drivers, let’s call them Anabella and Brenda. It's April...
New PHEVs are coming
Apparently a 34% fall in PHEV sales is the fault of HMG’s decision to remove the grant? I have to...
Yes the future IS electric
It appears around a million Europeans bought petrol cars rather than diesels in 2018. HRUX’s own...
A Real Conversation with a Mini Dealer
“So what’s the electric only range on the PHEV?” “There’s no electric mini yet. We only have the...
Company Car Tax 2019
I’m reviewing a car fleet for a client – and I’m looking at a Jaguar XE 2.0d where the CO2 has...
Fleet Review Process
30,000 business miles a year - which makes more sense: Skoda Superb Estate or a Nissan Navara...
The Impact of WLTP
Good to see government is still working, and not all on Brexit! Evidence being sought to help the...
Total Tax and NI Take on Private Fuel
Been writing for a while now on my frustrations with high company car taxes. But why are they so...
Alternative approach to presenting DB scheme funding results
Prudence in pension scheme funding can provide cover for downside scenarios and, in those...
HMRC tax take from company cars
Having spent some time at the Fleet Management Live show over the last 2 days and seen the focus...
Productivity Growth has Fallen Short of QBR Forecast
The news today that the Office for Budget Responsibility has persistently over-estimated Britain's...
Can I Let You Into a Little Secret?
Can I let you into a little secret? Most of the LinkedIn posts I write get rejected by my partners...
The Latest Statistics from Expenses and Benefits
The latest statistics from Expenses and Benefits have been produced (link in the comments...
UK Gov gets blood from stone!
UK Gov gets blood from stone! The graph shows the total tax and NIC take from private fuel scale...
Biggest P11D concerns for 2017/18
Some 3.8 million individuals are expected to receive at least one P11D reportable taxable benefit...
FIVE Facts About P11Ds
Tax and employee benefits; FIVE things you might not have known! At £250bn (2015/26) PAYE...
OMG Another Post Around P11D
OMG another post around P11D - anyone would think we’ve a product to sell! 🙂 I know, I know, it’s...