Should my business be going all-electric or plug-in on the new Range Rover Lease?

The new Range Rover Lease - Should my business be going all-electric or plug-in?

More groups and influential personalities are throwing their weight behind the EV agenda. At grassroots, the  EVA are doing so much for the UK’s electric car drivers, regularly working with their members and receiving feedback in order to communicate the barriers to local and national Government.

The new CEO Vicky Edmonds is now pushing the agenda of the people with a rigorous zeal, launching their Charge Up Change  to help bring the key issues of actual drivers to those who influence the policy and the economics at the top level. For example, recent surveys and feedback have noted some fundamental concerns such as:

•  New EVs are expensive
•  Confidence is low for the 2nd hand market
•  Public charging costs too much
•  Public charging isn’t always accessible

The new CEO of Nissan, James Taylor, is doubling down on this having just landed his new role. Just two weeks into the helm of Nissan he is pushing for more assistance in the BEV market, with the suggestion that VAT on public charging should be removed, or halved at the very least.

Forthright in his position at Vauxhall regarding EV policies, his focus has not been minimised with the recent launch of the all-electric Nissan Micra, now due to the UK around 2026 - 2027.

However, there are suggestions that the UK could do more in the retail and personal sectors - hire purchase, personal contract hire and personal contract purchase - which replicate the support for businesses and fleets.

Of course, reducing the VAT on public charging (currently 20%), would be one small addition which could help encourage and motivate the private buyers of Britain to make the transition. With the new electric Nissan Micra and a replica of the Renault 5 EV, due soon, there needs to be a stable market to encourage this.

But James Taylor, and the EVA, will not be on their own in the quest to improve the nations’ electric car strategy. One of our most iconic and luxury SUV brands Range Rover is now just a short time away from launching their pure electric Range Rover, further to extensive testing in the Arctic Circle.

With sub-zero and extreme winter conditions, the green Range Rover had the opportunity to put to the test the ThermAssist technology for optimising range and preserving charging capability, while ensuring the practical and ergonomic SUV can handle the difficult and dangerous conditions presented. With some 45,000 miles of testing on lakes and land trucks, there is belief by the engineers that this will be one of the most capable and robust luxury SUVs on the market.

The ThermAssist technology will reduce heating consumption by around 40% and recover heat to warm the systems / cabin in temperatures which are as low as -10C. Built on the 800V battery architecture, the 117kWh battery is intrinsic to the effortless performance and refinement of this new car option.

With 18 degree and 17 degree mu inclines, this is not just a show car. The twin-chamber air suspension will help balance the functionality with experience delivery. For more information, read the latest from the Land Rover media team.

The quandary for many businesses and fleets will be all-electric or PHEV when it comes to the new Range Rover. While the plug-in electric vehicle, a petrol engine with battery technology is currently available, the move to lithium batteries only, is a new feather in the Land Rover cap.

With specifications like the SE, HSE, Autobiography and SV readily available, many directors, business owners and entrepreneurs have been jumping into the P460e and P550e.

The 460e is a 3.0 litre petrol Ingenium engine with an additional 38kWh lithium battery. Real range EV-only driving of about 59 miles and domestic charging in circa 5 hours, the combination of battery and petrol ensure lower CO2 (16g/km) and improved mpg. Working together, or independently, the mix of both technologies are designed to offer fuel flexibility and financial robustness. The introduction of an entire battery platform means that electricity will be the sole energy source.

The big influence behind the car you choose for your business is the tax; both the employer and employee have considerations. For the business, their accountants and finance team will appraise the lease on its tax efficiency.

With contract hire the monthly rental can be offset against Corporation tax, with a limitation that cars emitting over 50g/km can only recover 85%. For purchases, cash or finance, the business can write down 100% if the vehicle emits 0g/km as opposed to 18% (main rate pool) with 1 - 50g/km vehicles i.e. a PHEV. Up to 50% of the VAT can be reclaimed on the rentals for a car unless it can be classified as a pool car. In which case, you can reclaim 100% of the VAT on the finance.

With maintenance rentals, you can always reclaim 100% of the VAT on this aspect. With an EV, do consider installing a charge point(s) at work, as this is fully reclaimable against Corporation Tax under full expensing rules.

But with the driver / employee, the Benefit in Kind (BiK) implications can often determine battery or hybrid, even with the Range Rover. While the business can lease the vehicle, and undertake the cost of all servicing, maintenance and insurance, the individual must account to HMRC for their income tax on the vehicle.

This is calculated using the vehicle value (P11d), the CO2 emissions (shown as g/km) and the employee’s tax bracket (20, 40 or 45%). The big factor in the UK is the emissions, with pure electric emitting no tailpipe CO2. This translates as a minimal BiK with just 3% payable in 2025 to 2026. For a PHEV there is still a beneficial BiK rate, so long as it emits not more than 50g/km of CO2. Based on the electric mileage, the driver will pay between 6% and 15% BiK for 2025/26. With a Range Rover having a P11d of £130,000 - £200,000 the financial repercussions are great, so drivers do need to carefully consider their fuel choice.

Of course, suitability and attitudes to charging are going to be paramount here. Some customers with domestic charging and who are prepared to engage with the public network will embrace all-electric driving. With the Range Rover expected to offer 300 mile+ real world ranges, this is set to be a practical option regardless.

However, not all drivers are alike, with some preferring the convenience of combustion at the personal cost of taxation. This is why the Government have extended the ZEV Mandate and have loosened the conditions to include hybrid and plug-in hybrid as part of offering greater choice and flexibility to customers, businesses and manufacturer alike.

Ready to go electric with your next Range Rover?  

Head to our dedicated  Land Rover  special offers section, or just get in touch with our team on 01942 943 209 or by emailing us at [email protected]