Electric Vehicle Solutions for Business

Benefits as an Employer

Vehicle	P11d taxable list price of vehicle	National insurance contribution at 13.8% 2020 - 2021 (tax year)	Annual lease costs (business rates)	Fuel cost of 20,000 miles per annum	Tailpipe emissions for 20,000 miles
BMW 320d SE Auto	£33,470	£1,432	£6,027	£2,200	4,240 kg CO2 eq
Tesla Model 3 Standard Range Plus	£42,935	£0	£6,424	£800	0 g CO2 eq

Potential savings over 3 years (2020-2023): BMW 320d SE Auto vs Tesla Model 3

£7,127⁽¹⁾

Savings as an employee

Vehicle	P11d taxable list price of vehicle	Company car taxation % 2020 - 2021 (tax year)	Annual taxable benefit 2020 - 2021	Benefit in Kind annual tax payable at 40% (higher rate)	Fuel cost of 6,000 miles per annum
BMW 320d SE Auto	£33,470	31%	£10,376	£4,150	£660
Tesla Model 3 Standard Range Plus	£42,935	0%	£0	£0	£240

Potential savings over three years (2020-2023): BMW 320d SE Auto vs Tesla Model 3

£13,195⁽²⁾

Potential savings for an employee on a basic rate of tax (20%) over three years, based on the above scenario:

£7,227⁽²⁾

Notes

Caveat for employer savings calculations
Employers have to pay Class 1A National Insurance Contributions (NIC) on company cars and fuel at 13.8%
National Insurance contributions of 13.8% on the annual taxable benefit (P11D value x HMRC set company car tax %) - This assumes that the National Insurance contribution of 13.8% remains constant from 2023 - 2026
BMW 320i M Sport – CO2 emissions – 148g CO2eq/km : source DriveElectric

Fuel cost calculation
Fuel cost for 20,000 business miles calculated at 15p per mile (petrol) or 9p per mile (Electric)
Source: HMRC Advisory Fuel Rates from May 2023
Advisory fuel rates - GOV.UK (www.gov.uk)

BMW 320i M Sport Auto
HMRC Company car tax rating for this vehicle is 34% for Tax years 23/24, 24/25 and 25/26
P11D cost BMW 320d SE Auto 2020 model = £40,545 (source: Parkers)
National Insurance Contribution (NIC) = £40,545 x 0.34 (34%) x 0.138 (13.8% NIC rate) = £1,902.37 = £1,432 (rounded up)
Fuel cost per year = 20,000 x £0.15 = £3,000
Lease cost per year based on 3+35 months, 20k mileage per year, inc maintenance contract – £7,909
Price correct as at 30th May 2023. Source: Drive Electric
Combined cost over 3 year lease = (£1,902 + £3,000 + £7,909) x 3 years = £38,433
Tailpipe emissions = 20,000 miles x 0.212 kg CO2 eq/m = 4,240 kg CO2eq

Tesla Mode Y RWD Auto
HMRC Company car tax rating for this vehicle is 2% for tax year 23/24, 2% for tax year 24/25 and 3% for tax year 25/26
P11D cost Tesla Y RWD = £44,935 (source: Parkers)
National Insurance Contribution (NIC) for 23/24 is £124.02 (rounded down)
NIC for 23/24 is £44,935 x 0.02 (2%) x 0.138 (13.8% NIC rate) = £124.02 = £124 (rounded)
NIC for 25/26 is £44935 x 0.03 (3%) x 0.138 (13.8% NIC rate) = £186.03 = £186(rounded)
Total NIC for 3 year period = £124 + £124 + £186 = £434 (rounded)
Lease cost per year based on 3+35 months, 20k mileage per year, inc maintenance contract – £7,943
Price correct as at 30th May 2023. Source: Drive Electric
Fuel cost per year = 20,000 x £0.09 = £1800
Combined cost over 3 year lease = £1444 + ((£1800+ £7,943) x 3 years) = £29,663 (rounded)

Scenario, lease tax and fuel savings over 3 years: BMW 320i M Sport Auto vs Tesla Model Y RWD
£38,433 - £29,663 = £8,770
employee savings calculations
The above employee scenario is based on an employee earning >£50,000 per year (so BIK is calculated at the higher rate of tax). For an employee earning less than £50,000 per year, on a basic rate of tax of 20%, the savings over 3 years would be £7,227
Benefit in Kind (BIK) Tax calculation
P11d value x HMRC Company Car tax rating = Annual Taxable benefit
Annual taxable benefit x Employee Higher Income Tax rate of 40% = Benefit in Kind (BiK) tax

Fuel cost calculation
Fuel cost for 6,000 personal miles calculated at 11p per mile (diesel) or 4p per mile (Electric)
Source: HMRC Advisory Fuel Rates from March 2020

BMW 320d SE Auto
CO2 emission rating – 132g CO2eq/km = HMRC Company car tax rating of 31% for Tax years 20/21, 21/22 and 22/23
Source: Next Greencar
P11D cost of BMW 320d SE Auto 2020 model = £33470 (source: Parkers)
Benefit in Kind (BiK) tax calculation = £33,470 x 0.31 (31%) x 0.4 (40% income tax bracket) = £4,150.28 = £4,150 (rounded down)
Fuel cost per year = 6,000 miles x £0.11 per mile = £660
Combined cost over 3 year lease = (£4150 + £660) x 3 years = £14,430
For employees on 20% basic rate of tax =- savings would be £33,470 x 0.31 x 0.2 = £2,075.14 = £2,075 (rounded down)
Combined cost over 3 years (2020/2023) = (£2,075 + £660) x 3 = £8,205

Tesla Model 3 Standard Range Plus
HMRC Company car tax rating for this vehicle is 0% for tax year 20/21, 1% for tax year 21/22 and 2%
for tax year 22/23
Source: Next Greencar

P11D cost Tesla 3 Standard Range Plus = £42935 (source: Parkers)
BIK for 20/21 is £0
BIK for 21/22 is £42,935 x 0.01 (1%) x 0.4 (40% income tax bracket) = £171.74 = £172 (rounded up)
BIK for 22/23 is £42,935 x 0.02 (2%) x 0.4 (40% income tax bracket) = £343.48 = £343 (rounded down)
Total BiK = £515
Fuel cost per year = 6000 miles x £0.04 per mile = £240
Combined cost over 3 year lease = £515 + (£240 x 3years) = £1,235.22 = £1,235 (rounded up)
Scenario tax and fuel savings over 3 years BMW 320d SE Auto vs Tesla 3 Standard Range Plus
£14,430 - £1,235 = £13,195
For employees on 20% basic rate of tax - savings would be:
BIK for 20/21 is £0
BIK for 21/22 is £42,935 x 0.01 (1%) x 0.2 (20% income tax bracket) = £85.87 = £86 (rounded up)
BIK for 22/23 is £42,935 x 0.02 (2%) x 0.2 (2% income tax bracket) = £171.74 = £172 (rounded up)
Total BiK = £258
Combined cost over 3 year lease = £258 + (£240 x 3 years) = £978

Basic rate of tax employee - Scenario tax and fuel savings over 3 years BMW 320d SE Auto vs Tesla 3 Standard Range Plus
£8,205 - £978 = £7,227

Let us help your business drive electric

Start your EV journey

Build your infrastructure

Why switch your business to EV?

Benefits as an Employer

£7,127⁽¹⁾

Savings as an employee

£13,195⁽²⁾

£7,227⁽²⁾

Join the growing electric vehicle community

Milk & More lead the way with the UK's largest fleet

Why choose EDF for your EV solution

Experience

Trust

Expertise

Investment

Learn more about electric vehicles for business

Grants, subsidies and schemes for electric cars

Electric cars and the environment

Road tax & company car tax on electric vehicles

Notes

Let us help your business drive electric

Start your EV journey

Build your infrastructure

Why switch your business to EV?

Benefits as an Employer

£7,127(1)

Savings as an employee

£13,195(2)

£7,227(2)

Join the growing electric vehicle community

Milk & More lead the way with the UK's largest fleet

Why choose EDF for your EV solution

Experience

Trust

Expertise

Investment

Learn more about electric vehicles for business

Grants, subsidies and schemes for electric cars

Electric cars and the environment

Road tax & company car tax on electric vehicles

Notes

£7,127⁽¹⁾

£13,195⁽²⁾

£7,227⁽²⁾