Matt Hodgson, Partner at Claritas Tax, Zoom EV Leasing Customer (car supplied by our partner Hendy Group)


Transitioning to electric vehicles is a hot topic for business owners, Finance and HR Directors, as it should be. The benefits for going EV speak for themselves; cost savings, sustainability, employee retention, among many others. We decided to get insights from businesses who have or are in the process of making the switch. What were their original reasons for looking at EV? What has it meant for their businesses? What would they advise?

We went out to a host of businesses in different industries and will be sharing their stories to help others through the process. We've got tax consultancies, electrical installers, wealth management companies and more to come!

Matt, please introduce us to your business, who you are and what you do? 

Claritas Tax is one of the UK’s leading, full-service tax advisory and compliance practices, focused primarily on entrepreneurial and ambitious businesses, their stakeholders and investors.

What were the key factors that influenced your organisations to go electric?

The key factors of transitioning to EV were both environmental and the current tax efficiency, both from a company and personal perspective.

Can you explain the financial benefits to your organisation in going electric?

The financial benefits are pretty clear, both in terms of corporate and personal taxation savings. From a company point of view, unlike a combustion engine car, our business can deduct the full cost of buying or leasing an electric vehicle from our pre-tax profits, which reduces our tax bill. From an employee perspective, our team is able to sacrifice their salary to cover the monthly cost of their EV, thereby reducing the amount of gross pay subject to income tax and NICs. In other words, it is cheaper than paying the monthly lease payments out of their net salaries. There’s also the 2% Benefit-in-Kind (BIK) rate frozen until 2025 for company cars, which shouldn’t be forgotten about! *This is compared to 25% for any car with 100 g/km CO2.

How did you find the process of going electric?

Very straight-forward and never had the ‘range anxiety’ etc. that people go on about.

Any thoughts on working with Zoom EV when transitioning to electric?  

Zoom EV know all there is to know about the EV market and have been a great partner to work with on our EV transition.

What advice would you give other/ similar organisations when considering switching their fleet to EV?

Put simply, I’d get on with it sooner rather than later.  Our staff have really taken to it and I’d suggest enjoying the tax benefits whilst they’re still available!

As you can see, even today, there continues to be compelling financial reasons for going electric (you've heard it from the tax people!). These aren't the only reasons for choosing to go EV. However, if you do own or run a business, it's important to know that the benefits won't be around forever and will ultimately be phased out as uptake increases. Therefore, where possible, it could be a great opportunity to take advantage of... and if your accountant hasn't raised it already, please ask them why!

If you need some assistance in going EV, we can help. Whether it’s business contract hire or personal contract hire, we can help you navigate going EV. In addition, we can give you access to all of the services required to run your EV and saving you money through our EV Benefits Membership. Contact us at membersupport@zoom-ev.com or call 01565818606  and select option '1'.

The Zoom Team