Depending on the value of your EV there is no road tax or a reduced rate applies. Congestion charge is also exempt.
Benefit In Kind (BIK)
If your car is a company car then there is a significant tax saving, the Benefit In Kind (BIK) from April 2020 will be £0 for a fully electric vehicle.
Let’s see what this means in practice:
Like for like is quite difficult when looking at petrol/diesel v electric but a good comparison would be the Mercedes GLC v GQC.
Mercedes GLC (DIESEL) will cost around £40,620 for the entry level model and a lease will cost around £346.79/month, but the BIK cost on this car is £5,000.
The Mercedes GQC (ELECTRIC) starts at £65,720 so a much higher value and much higher monthly lease cost of around £640/month but the BIK is £0.
Compared over a year.
Diesel/petrol = £4,152 lease payment + £5,000 BIK so the total cost is £9,152.
The electric will cost £7,680 in lease payments but the BIK is £0, so the total cost for the year is £7,680.
Therefore the EV is £1,472 per year cheaper for a car worth £20,000 more and that’s before any fuel savings.
Maintenance on electric is also low as there are only a small number of components. According to an article in forbes (Raftery, 2018) there are over 2000 parts in an Internal Combustion Engine (ICE) but only 20 in an electric car.