Category: Electric Vehicles

As we collectively tackle the climate crisis, there is a real need for our transportation to reach higher standards of sustainability. The electric car has been growing both in popularity and accessibility in the last decade, and June of 2022 saw a 14% year-on-year increase in EV registrations. But is there any other sustainable means of getting from A to B?

Hydrogen vehicles have been cause for heated discussion in recent years, with the developing technology opening up possibilities and qualms. In this blog, we’ll take a look at how hydrogen vehicles work, how much traction they are gaining, and in what areas.

How do hydrogen cars work?

Hydrogen vehicles produce electricity by powering a fuel cell with hydrogen. What this means is a chemical reaction fuels the vehicle: hydrogen moves from the tank into the fuel cell, where it mixes with oxygen, creating H2O and generating the electricity that powers the vehicle’s motor.

Refilling a hydrogen vehicle looks much the same as refilling a combustion engine vehicle. You would attach the refuelling pipe to the vehicle and wait for it to fill up, which happens in as little as a few minutes (for hydrogen cars) giving it an edge of convenience over EVs.

How many hydrogen vehicles are on the roads?

Using hydrogen as an energy carrier is not a new idea, but the use of fuel cells for vehicles is something that has seen an acceleration in recent years. Because hydrogen vehicles are still relatively new, there are only around 60,000 of them in motion today and of that number only 300 are on UK roads.

Why aren’t there more hydrogen vehicles?

Technology for hydrogen fuel cells has been developing slowly over the years, particularly in comparison to electric vehicle batteries. The immediate reason for this is that hydrogen vehicles are more complex than their electric ‘rivals’, relying not only on the development of more practical technology but also on the introduction of infrastructure to support their use.

Unfortunately, despite offering similar sustainable qualities as electric vehicles and more mileage too, hydrogen cars and vehicles are currently quite impractical for mass adoption. Some of the limitations that hydrogen vehicles suffer from currently include:

• Hydrogen is highly flammable – improper handling could cause serious accidents.
• High pressure handling – compressing the gas is difficult and increases the risk of accident if handled incorrectly.
• Staying renewable is expensive – the more affordable ways of producing hydrogen currently rely on large quantities of fossil fuels.
• They are costly to build – they are yet to be as accessibly priced as EVs are becoming.

Nonetheless, if more progress is made in the coming years, we may see the limitations of hydrogen cars lessen as more cost and energy efficient ways of producing the vehicles become available. As this happens, the introduction of hydrogen refuelling infrastructure will also help make hydrogen vehicles a more viable option.

Heavy duty hydrogen vehicles

Whilst the use of hydrogen fuel cells for cars and similar passenger vehicles is not yet practical, hydrogen has been making waves in other areas. Hydrogen power has a high potential for HGVs and long-haul vehicles as a sustainable alternative. HGVs currently account for 18% of greenhouse gas emissions putting them at high priority for vehicles that need sustainable alternatives. Unfortunately, EVs are yet to reach the range that’s needed by long-haul vehicles, with most only capable of around 200-300 miles maximum.

You can read more about heavy duty electric vehicles here.

JCB hydrogen engine

Whilst the use of hydrogen fuel cells for cars and similar passenger vehicles is not yet practical, hydrogen has been making waves in other areas. In the last few years, there have been a number of firsts for hydrogen powered plant machinery on construction sites. JCB announced the development of the first hydrogen powered excavator back in 2020 as part of their efforts to meet NetZero 2050.

Fuel Card Service EV Hub

Hydrogen shows real potential as an eco-conscious alternative to combustion engines for HGVs, but for most the move to EVs is a more accessible option. We are growing our EV hub, to offer a selection of EV charge cards, information on charge point locations, as well as a range of insights into the development of electric vehicles of all sizes.

If you’d like to learn more about the services and fuel cards we offer, get in touch with our team today.

Electric vehicles aren’t just great for the environment, but they also help drivers and businesses save money by providing income tax incentives and other benefits. This blog will discuss all the different types of benefits provided to electric car users including:

• Road tax benefits
• Tax on Benefits in Kind
• EV congestion charge exemption
• EV charging tax relief
• Electric van benefits
• Government grants and allowances
• Privately owned electric cars

Electric car road tax

Electric vehicle road tax is paid by the individual and depends on the type of electric car, and when it was registered. For vehicles that are 100% electric, no Vehicle Excise Duty (road tax) is applicable. This will continue until 2025.

Road tax is also not applicable to any cars registered between 1st March 2001 and 31st March 2017 that have an emission lower than 100g / km. Hybrid cars registered after this period have to pay road tax, and rates vary between £0-135 a year, depending on how much carbon dioxide emission the car produces.

BIK on electric cars

Benefits in Kind refers to company benefits employees receive in addition to their salary, and these are often taxable. Car related benefits in kind tax is linked to how much carbon dioxide emission the car produces, so if you have a petrol car with a CO2 rating of 145g /km, your benefit in kind will be higher compared to an electric car as you’ll be producing more emission.

Currently, both pure and hybrid electric vehicles that can travel up to 131 miles on a single charge have a BIK tax of 1%, this is set to increase to 2% in 2023. However, for hybrid cars that can only last 30 miles on a single charge, the BIK tax increases for up to 13%. An additional Income Tax charge is payable for company car drivers that have their fuel paid by the employer.

Class 1A National Insurance Contributions

When offering a company car benefit, employers have to pay a National Insurance Contribution of 13.8% on the total value of benefits provided, which for a normal vehicle include the car and the fuel. However, if the vehicle offered is an electric car, the contribution will be massively reduced – helping save costs.

EV congestion charge

Congestion charges vary between cities, with London having a daily £15 per vehicle, from 7am -10pm. Electric cars however do not have to pay this charge, so company fleets or those offering cars to employers can massively save on this by in clean air zones anytime they want.

Capital allowance

The government provides a 100% First Year Allowance until 31st March 2025 to all low emission and electric cars. This refers to businesses being able to claim up to 100% deduction on their vehicles’ first year’s costs. This means cars that produce a CO2 emission:

• between 51-110g/km, can claim up to 18% of allowance
• higher than 110g/km, can only claim 6% of allowance
• lower than 50g/km, can claim 100% of the allowance

This means all the cost incurred to a business during the first year of holding the car can be returned.

EV charging tax relief

Although there aren’t any tax relief benefits for electric vehicles currently, with businesses charged a standard VAT of 20% and individuals charged 5% for their electricity – companies don’t have to pay for fuel duty which is 58p per litre before tax due to electricity not being classified as fuel.

Workplace EV charging

There is no taxable benefit for businesses of providing free electricity to employers to charge their vehicle at the workplace. The exemption criteria include:

• Businesses must have a dedicated charging point
• The charging points must be at or near the office/workplace
• Charging must be available to all employers

The exemption however does not apply to reimbursements offered to the employee for vehicle charges away from the workplace.

Electric van

As of 2021, electric vans have no tax implications even when used for personal reasons outside of business hours.

Government grant

To promote the uptake of electric vehicles, the government has introduced a plug-in car grant that provides up to £2,500 towards the cost of a new electric car that costs up to £35,000. A £3,000 grant is available for small vans, while a £6,000 grant is also available for large vans. However, to meet the criteria, the vehicle must:

• Have an electric range of 70 miles
• If hybrid, it must also have a combined CO2 emission no more than 50g/km
• Only a few of the hybrid PHEVs are eligible, but all major full BEVs are

Privately owned electric cars

If the employee uses their own electric car for business travel, the employer can reimburse 45p per mile for the first 10,000 miles driven in the year, while any additional travel is paid at 25p per mile.

The employee will also be entitled for an Electric Vehicle Homecharge Scheme grant that covers 75% of the cost of a charge point and installation per household.

We hope this guide has been useful in providing you insights into the tax related benefits of owning an electric car. Check out our blog for more industry blogs and insights.

Finally, if you think a fuel card could benefit your business, get in touch with our team of experts for support. Or browse our range of fleet services and upgrade your business’ technology stack.

Amidst technological advancements, and growing pressure from consumers and the government to make steps to reduce climate change, the electric vehicle market has grown exceedingly fast and is showing no sign of slowing down. In 2030, there will even be a ban on new sales of petrol and diesel cars in the UK, meaning UK businesses of all shapes and sizes must prepare to make the shift to electric.

For commercial fleets in particular, electrification can bring about many advantages. For example, you can expect to pay £4 per 100 miles for an EV compared to £14 per 100 miles for the same-sized petrol or diesel car. With cheaper running costs, and a wealth of environmental benefits, it’s no wonder businesses are placing a greater focus on EV technology.

However, it’s a new area for many, and businesses are loaded with questions around infrastructure, costs, compatibility, and charging times. That’s why we’ve created this guide to electric charging points, which should help you get up to speed. Read on to learn about:

• Different types of chargers.
• Electric vehicle charging stations.
• How your business could benefit from having electric charging points installed.

Different types of EVs

Depending on the type of electric vehicle you own, the charging infrastructure and capabilities of your fleet will vary. The main types of electric vehicles include:

• Battery Electric Vehicles (BEVs): These are the most common EVs, with over 462k cars estimated on UK roads. These cars are powered by a battery or motor so are charged from an external power source and have no emissions.
• Plug-in Hybrid Electric Vehicles (PHEVs): These hybrid vehicles have a petrol or diesel engine as well as a battery that can be charged, which means that they can use either source of power to drive. There are an estimated ~384k PHEVs on UK roads.
• Hybrid Electric Vehicles (HEVs): In comparison to the other two types of vehicles, this EV does not require to be plugged in to charge. Instead, the electric battery or motor is charged through regenerative braking. This is why these vehicles are sometimes described as ‘self-charging hybrids’ since they do not need to connect to an external power source.

Types of EV charging points

There are four distinct types of electric vehicle charging – slow, fast, rapid, and ultra-rapid. This charging is categorised into either direct current (DC) or alternating current (AC).

• Slow: 3 kW-6 kW of slow charging that can take between 6-12 hours to fully charge your vehicle. This method of charging is most commonly found at home, where there isn’t a time restriction for when you need your vehicle to be charged as this can be completed overnight.
• Fast: Typically rated 7kW, taking 4-6 hours to charge, or 22kW, which takes 1-2 hours. These chargers are popular in car parks of shops, supermarkets, or offices, making them the most obvious choice for business owners.
• Rapid: Rated 22-50kW, rapid chargers can refill an EV battery to 80% in around 40 minutes.
• Ultra-rapid: Charging 80% of the car in 10-15 minutes, ultra-rapid chargers are often found at motorway service stations.

How far can an electric car go on one charge?

It’s estimated that a fully charged electric vehicle can travel 100-300 miles before needing to be charged again. However, similar to a mobile phone, EV owners will often top up their charge rather than running it from full charge to nothing.

EV charging points in the UK

Over the past few years, there has been a significant increase in public electric vehicle charging stations. At the end of July 2022, there has been a recorded over 33,000 charging points across the UK according to Zap Map.

How much does it cost to charge an electric car?

The cost of charging your electric vehicle depends on which charging point you’re using. Public electric charging points are usually free to use, as well as at businesses where employers install workplace chargers.

For rapid charging points, these usually require a fee at motorway services. Typically, this will cost £11 for a 30 minute, 90 mile charge. Read more about the cost of EV charging.

How do you pay for electric car charging?

The majority of EV charging stations will accept card payments. Some might require you to download an app to pay.

If you manage a fleet, you may be concerned about how to manage the costs of EV charging. It is still possible to use fuel cards to pay to charge electric vehicles. For example, the Shell EV Card can help you save 2p per kWh which you can access at over 7500 EV charging points across the UK. Not only this, with the same card you can access over 3,800 stations for traditional fuel too if you’re operating a mixed fleet.

If you’re concerned about transitioning your fleet to an electric, or semi-electric model, get in touch with our experts to learn more about how we can support you with the right charge cards and technology.

Do electric cars pay the congestion charge?

Another benefit of going electric is that all EVs are exempt from the London Congestion Charge and the Ultra-Low Emission Zone charge.

Government grants for electric car charging points

Having an EV charging point installed at your business is not only positive for the environment, but it’s an additional perk for employees. For businesses with an EV fleet, it may be beneficial to invest in charging points to charge vehicles overnight before shifts begin in the morning.

The Workplace Charging Scheme offers a government funded grant which covers up to 75% of the costs of purchasing and installing an EV charge point. This is capped at £350 per socket for up to 40 sockets per applicant. All you need to do is complete the Workplace Charging Scheme application form and, if successful, you’ll be issued a unique voucher to give to ChargePoint installers.

How to charge electric cars at home

For individuals who want to charge their electric vehicle at home, you can have an electric charging port installed at your property. As with workplaces, the government offers the £350 subsidy towards purchasing and installing through the EV ChargePoint grant at domestic properties.

The average cost for the EV charger itself as well as installation is £1,000, or £650 if successful for the government grant. 3kW chargers will be cheaper to install in comparison to 7kW chargers, so it’s important to consider which is the best for you.

It could be a feasible model for some businesses to offset the cost of home EV charging for vehicles that are to conduct business mileage. Government funding to support the installation of charging infrastructure is still accessible in this instance, making it an option that’s worth exploring for businesses.

How to manage EV charging as a UK business

It’s clear that electric vehicles are here to stay and will eventually become the norm as petrol and diesel cars cease to be made after 2030. As a result, it’s time to consider how EVs can be managed by your business through electric fuel cards.

To find out more about electrifying a commercial fleet, you can visit our Electric Vehicle Hub, which will be updated as more EV charging services become available. If you’d like further advice on how Fuel Card Services could help you manage your electrical fleet, get in touch with our expert team today.

Electric vehicles are becoming increasingly popular, and with a larger number of electric vehicles taking us from A to B and delivering goods comes a need for updated infrastructure and resources, particularly electric vehicle charge points.

This can be costly for businesses, which is where the Workplace Charging Scheme (WCS) can help. Offering support with the cost of installing EV charge points in businesses, charities, public authorities, and small accommodation businesses, the Workplace Charging Scheme is helping people and businesses afford sustainable change and development.

In this article, we will talk you through the ins and outs of the Workplace Charging Scheme – from who can use it, how much you might receive from the scheme and how to qualify for the scheme.

What is the Workplace Charging Scheme?

The Workplace Charging Scheme is a UK government scheme offered by the Office for Zero Emission Vehicles (OZEV) to support businesses with the introduction and installation of electric charge points. The aim of this is to encourage the switch from traditional fuel cars to electric vehicles by making it increasingly convenient for EV drivers to charge their vehicles.

Helping to make charge points more readily available for private EVs parked at work as well as company fleet EVs, the WCS can reduce the purchasing and installation costs of new workplace charging points by as much as 75%.

• Max £350 per socket,
• One business can claim for up to 40 sockets (40 single socket charge points, 20 double socket charge points),
• WCS can be claimed only for charge points installed after the issue of the voucher.

Who can use the Workplace Charging Scheme?

Whilst the Workplace Charging Scheme is available to any business, public authority, small accommodation business, or charity but there are some conditions that must be met.

To qualify for the WCS, you must:

• Have sufficient off-street parking available for staff and fleet use, which is either on-site or in reasonable distance of the business premises.
• Express a future or existing need for the businesses/be encouraging the uptake of EVs by your staff, even if you don’t currently have EVs in your fleet.
• Have the charging stations installed by an OZEV approved WCS installer.

Small accommodation businesses are a recent addition to the WCS. They are defined as hotels, holiday and short-stay accommodation, camp sites, trailer parks and recreational vehicle parks.

How to apply for the scheme

To receive a Workplace Charging Scheme grant for your business, you must first fill out the online application form, which will ask you to declare any support you have received from public sources given under de minimis state aid regulations. You will also have to agree to the terms and conditions of the scheme.

Following your completion of the application form, you will receive a decision from the WCS administrator within five working days. You may require further checks, in which case you will have your place in the queue reserved whilst these are carried out.

If you are successful, you will receive unique voucher codes which you can then use to get started on the installation of charge points for your business. If you are unsuccessful, you will receive feedback on the issue that led to this decision, and you may appeal.

If you have received your voucher codes, you must ensure that you have your installation carried out by OLEV-authorised suppliers/installers and claim within the expiration period of the vouchers, which is 6 months from the date of issue.

Following the installation of your EV charge points, there are a number of checks that the DVLA will carry out to ensure that all details are accurate, and all expectations have been met. Once this has been carried out and confirmed, you pay the installer who will receive the additional grant money promised by the vouchers within 30 days.

To find the application form and for more insight into the recommended checks to undergo before applying for the WCS, you can visit GOV.UK 

EV Charge Cards for when you’re away from base

You can’t always guarantee that you fleet will be back on home turf when the need to recharge arises. If you want to control costs when your fleet is recharging away from home, then EV charge cards could be the perfect option for your fleet.

Designed to work in the same way as traditional fuel cards, EV charge cards will allow you to manage fleet spending on electricity and reduce admin costs and time spent on expenses reclaims for your drivers. With a range of benefits available, including discounts on regular fuel (perfect for hybrid fleets), EV fuel cards could be the solution for charging way from base.

At Fuel Card Services, we offer customers the Shell EV Charge Card, which lets users pay for charging and traditional fuel with a single payment solution.

If you aren’t sure which EV charge card is right for you or you want to compare fuel cards, you can use our handy comparison tool, or get in touch with our team to discuss your options.

Friday 22nd April is Earth Day! It’s a day devoted to supporting environmental protection, so there’s no better time to start thinking about what we can do to combat climate change.

For fleet managers, there’s one obvious answer. Begin transitioning your fleet to electric vehicles!

Of course, this can take a number of years to fully transition, and Fuel Card Services is here to help fleets prepare for the 2030 ban on new petrol and diesel vehicles with products such as the Shell Electric Vehicle Card.

But how exactly does driving an electric car help to protect the environment?

Electric vehicles do not emit harmful gases

The average passenger car will produce approximately 4.6 metric tons of carbon dioxide every year. This gas is emitted from the tailpipe and sent into the Earth’s atmosphere. Worldwide figures show that passenger cars alone were responsible for 3.2 billion metric tons of CO2 being sent into our atmosphere in 2019. This figure was lower the following year due to the pandemic, but will continue to rise again. This figure also does not take vans or HGVs into account, which also emit a huge volume of harmful gases.

Electric vehicles, however, do not contribute to this! The lithium-ion battery that is most commonly used to power an EV does not let off harmful substances when it is being drained.

For fleets doing thousands of miles a year, the amount of pollution they could prevent by switching to electric vehicles is huge.

Does vehicle charging contribute to pollution?

Of course, it’s easy to say that electric cars are better for the environment when out on the road, but what about on the forecourt? Charging EVs requires electricity, which is often provided from unsustainable resources. In many cases, fossil fuels are still burnt to provide the electricity we use in our day to day lives – this includes charging our vehicles.

However, it is suggested that the emissions caused by powering your EV chargers are offset by the lack of emissions from the vehicle itself. All in all, the overall emissions from charging and driving an EV are around 30% less than running a combustion engine vehicle.

Additionally, certain EV charging hubs are making efforts to be even more sustainable. Shell’s first all-EV charging hub in Fulham is built with sustainability in mind. The energy used to charge the vehicles is 100% renewable. Charging at a hub like this would reduce your emissions even more than charging at home for example, and more renewable energy sources are set to be used in the coming years.

Isn’t electric vehicle manufacturing worse for the environment?

Quite a common argument against the adoption of EVs is that manufacturing them is actually worse for the environment, making them less green. It’s suggested that in many cases, the production of EVs will produce more carbon emissions.

Whilst this may be true, these emissions are once again offset by the fact that EVs will produce less emissions over its lifetime.

Harmful gases will be emitted during an ICE vehicle’s production and during its time on the road. For an EV, the harmful emissions are massively reduced once it leaves the factory. Therefore, driving an EV leads to a greener carbon footprint than a vehicle burning fossil fuels.

When will your fleet adopt electric vehicles?

It may seem like a while away, but the government is set to ban new petrol and diesel cars in 2030 in an effort to reach net zero. Of course, you don’t have to make the change before then – you can still use ICE vehicles made before that date. However, fleet managers should consider the potential cost savings that come from running a fleet of EVs.

Remember, Fuel Card Services is here to help. We can help keep your charging costs down with the Shell Electric Vehicle Card. You can also use this fuel card to pay for traditional fuels as you slowly phase out ICE vehicles.

Get in touch today and we’ll get your fleet moving towards a greener future!