Taking your Gardening and Landscaping Business electric with the new Ford Explorer

The new Ford Explorer EV - Take your Gardening and Landscaping Business electric

The UK’s car industry is on track to achieve its electric vehicle ambitions in 2024, according to the  Energy & Climate Intelligence Unit  . The Government think-tank is suggesting that manufacturers are on course to hit their zero-emission targets for 2024, with this being the first year that the ZEV Mandate  has been in force.

While a Conservative Government initiative, it is now Labour who are entrusted to push this through, by ensuring that car, and van, manufacturers are selling the designated percentage of zero-emission vehicles. For 2024 22% of the cars sold must be zero-emitting, with this increasing to 28% next year and by 2026 this rises to 33%.

For the next two years alone, there needs to be considered thought on what we do in the UK to ensure that we achieve these ambitious targets. Underpinning the regulations are penalties which are said to be up to £15,000 per non-compliant registration.

And while the ECIU are praising the ZEV Mandate for having the desired benefit, there are many others who do not feel the same way. Indeed there has been considerable political pressure from various manufacturers and motor trade societies who do not agree with the percentages / targets.

Over the last few months, there have been alternative perspectives and opinions on what the government should be doing to help the automotive industry flourish amidst the new landscape. Recent factory closures, manufacturer mergers and even manufacturer closures (like Fisker) are fuelling the fire for the anti-EV rhetoric.

But 2024 has been a year of growth for all-electric options, with a consistently big uptake month to month for those vehicles with 0g/km. While new sales / leasing transactions are perhaps more prevalent in the business sector, with contract hire and salary sacrifice schemes, it is the personal and consumer market which is set for big growth into 2025 and beyond.

So why are businesses, like Gardeners and Landscapers, using electric cars via their companies?

The move to all-electric transport in the UK has been heavily supported by tax incentives and robust accounting practices. If you operate a small / medium horticultural business, as a sole trader or partnership, you may be asked to review a transition to a limited company (incorporation).

Much of what you do will be subject to a discussion between you and your accountant, as creating a limited company will have a number of obligations. By switching to a limited company, there are considerations on how to properly manage your tax liabilities and manage your cash-flow more effectively.

When your “green business” generates more income, and profit subject to the Corporation Tax (25%), then you need to look at how you operate certain assets such as your cars. When you utilise a contract hire agreement, this is referred to as an operating lease. As such, if you operate an electric vehicle (with 0g/km) then you can claim 100% of the monthly rentals against Corporation Tax. If you are VAT-registered, then up to 50% of the VAT on the finance aspect and 100% on the maintenance aspect can be reclaimed too.

While purchase products, like hire purchase and cash purchase, allow your business to offset 100% of the cost under Capital Allowances, there is a commitment to the vehicle. With contract hire and leasing, this is a usership product. In essence, you can use the vehicle for 2 - 4 years, with no ownership obligations or upfront deposits / large capital outlay. With EV and battery technology changes, you do need to question whether you want a long term commitment to an EV?

For any directors of the gardening business, especially large garden centres like our local Bents , the beneficial BiK rates for zero-emission vehicles is a real advantage. Running a company car, as a director or employee, can be a great perk to the job.

However, this is not a free benefit with HMRC imposing a tax on you for the use of a vehicle. In England & Wales, we operate an emissions-based regime, which essentially means that the more polluting your vehicle, the higher the BiK percentage on your company car tax calculation will be.

The vehicle’s value (P11d) and the employee’s income tax threshold (20/40/45%) are also considered. Fundamentally, the real impact on your personal tax bill is by utilising a vehicle with no emissions (0g/km). At 2024/25 this is just 2% BiK and even by 2028/2029 this will only be 7%.

Compare this to your more polluting large luxury cars, with 160g/km and higher emission, and you are facing some considerable company car tax exposure - 37% BiK. Saving hundreds, or even thousands, of pounds per month is an eye opener. And let’s not forget some of the other advantages of all-electric driving such as cheaper servicing/maintenance costs, great performance, cheaper charging rates with specialised tariffs and robust discounts. Taking your successful gardening business into an electric format is not a sacrifice.

Ford are looking to capture your electric car business in 2025

Having recently announced the new Puma one of the UK’s favourite brands can offer you a Mach-E, Capri and the Explorer SUV. It is the latter we recently pictured.

Two key specifications of the new Ford Explorer SUV will be available to the UK including:

• Select - (from  £45,875) 19” alloys, 14” touchscreen, 7-speaker sound system, 12-way powered driver seat, heated front seats, massage seats, wireless charging, LED headlamps, adaptive cruise control, front and rear parking sensors and cross-traffic alert;
•  Premium - (from £49,975) 20” alloys, panoramic roof, 10-speaker B&O system, memory seats, hands-free tailgate, matrix LED lights and cross traffic alert

Choose from frozen white, agate black, magnetic, artic blue, rapid red and blue my mind. Add options like the driver assistance pack (HUD, 360-degree parking camera and hands-free tailgate), heat pump, 21” alloys and the retractable tow bar. For more information head to the  Ford  website.

And how does the new Ford Explorer EV perform?

•  RWD Standard Range – this RWD SUV will have a 52 kWh usable battery which will offer 0 – 62 times of 9.0 seconds, 99 mph top speeds and 125 kW (or 168hp). Expect a combined winter range of 155 miles with warmer weather allowing for 215 miles – a 185 mile combined. On charging, the 11 kW AC max will allow 5 hour and 45 min 0 – 100% charging times with the 115 kW DC maximum allowing 33 minute 10 – 80% times. A cargo volume of 536L is available with this car. It has a vehicle fuel equivalent of 144 mpg. You can tow with this EV – 750kg (Unbraked) and 1000kg (Braked). It also has no V2L or V2G capabilities. The Heat Pump is optional; and

•  RWD Extended Range – this RWD SUV will have a 77 kWh usable battery which will offer 0 – 62 times of 6.4 seconds, 112 mph top speeds and 210 kW (or 282hp). Expect a combined winter range of 225 miles with warmer weather allowing for 305 miles – a 270 mile combined. On charging, the 11 kW AC max will allow 8 hour and 15 min 0 – 100% charging times with the 135 kW DC maximum allowing 28 minute 10 – 80% times. A cargo volume of 536L is available with this car. It has a vehicle fuel equivalent of 142 mpg. You can tow with this EV – 750kg (Unbraked) and 1000kg (Braked). It also has no V2L or V2G capabilities. The Heat Pump is optional; and
• AWD Extended Range – this AWD SUV will have a 79 kWh usable battery which will offer 0 – 62 times of 5.3 seconds, 112 mph top speeds and 250 kW (or 335hp). Expect a combined winter range of 225 miles with warmer weather allowing for 305 miles – a 270 mile combined. On charging, the 11 kW AC max will allow 8 hour and 15 min 0 – 100% charging times with the 185 kW DC maximum allowing 26 minute 10 – 80% times. A cargo volume of 536L is available with this car. It has a vehicle fuel equivalent of 138 mpg. You can tow with this EV – 750kg (Unbraked) and 1200kg (Braked). It also has no V2L or V2G capabilities. The Heat Pump is optional.

Is the new Ford Explorer SUV your electric vehicle of choice for 2025?

Either head to the Ford manufacturer website to pre-order yours today or head to our designated section and speak to the electric car lease experts on 01942 910 001, or email us at [email protected]

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