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Stratford-upon-Avon

13 The Courtyard
Timothy's Bridge Road
Stratford-Upon-Avon
Warwickshire CV37 9NP

01789 294484

enquiries@gjassociates.co.uk

London

7-8 Stratford Place
Mayfair
London
W1C 1AY

0207 495 0304

enquiries@gjassociates.co.uk

Government promotes electric vehicles

The government department active in the promotion of electric vehicles has published guidance regarding the costs, charging issues and infrastructure. We have extracted a few comments and reproduced them in this post.

Buying an electric vehicle

While a new electric vehicle (EV) costs more to buy up front, today most drivers in the UK (around 80%) will buy their cars on the used market. Industry intelligence suggests that some EVs on the used market are now similar in price to their petrol and diesel equivalents. The number of used EV purchases have grown by over 50% when comparing the first quarter of 2022-23, increasing the pool of used vehicles available.

The price gap for new cars has continued to decrease over the past few years. According to industry data, the purchase price premium of an EV – relative to an equivalent internal combustion engine (ICE) vehicle – has dropped from around 50% in 2020 to around 40% in 2023. With battery costs reducing and continued innovation, some external forecasts predict that some EVs could be around the same price to purchase as a petrol or diesel car by the end of the 2020s.

Company car tax

Many workplaces provide salary sacrifice schemes, which can reduce the cost of purchasing an EV. To support this, company car tax is favourable for EVs at only 2%. The government has confirmed that company car tax for EVs will increase 1% each year from 2025 to a total of 5% in April 2028. By contrast, the most polluting cars will pay 37% company car tax in 2028. EVs are also exempt from vehicle excise duty until 2025 and will continue to receive favourable first-year rates after this.

Battery range

According to the Society of Motor Manufacturers and Traders, the average electric range for new EVs launched in 2023 was nearly 300 miles, compared to 210 miles in 2020. Some on the market have a quoted range of over 300 miles, which is enough to travel from Exeter to Leeds. There are now more than 30 models available with a quoted 200-plus mile range.

With battery costs falling around 80% over the past 10 years and further decreases expected, the government expects to see increasing numbers of EVs with higher ranges.

Charging costs

Charging a medium-sized electric car at home can cost around half the price of filling up an equivalent petrol vehicle. Charging at home costs around 8p per mile while a diesel or petrol vehicle can cost around 13p to 17p per mile to fuel, as of January 2024. Some suppliers continue to offer tariffs enabling drivers to charge their EVs at under 3p per mile (such as an overnight tariff offered by Octopus Energy).

On average, Zapmap charging data shows that the cost of charging an EV on the public network is roughly equivalent to fuelling an equivalent petrol car.

Charging points

The number of public chargepoints is growing fast. In January 2024, there were more than 53,600 public chargepoints available across the UK, a 45% increase since the start of 2023. This puts us on a growth rate consistent with delivering at least 300,000 chargepoints by 2030, in line with our forecast charging demand.

Availability of public charging devices is expected to continue increasing. ChargeUK, the industry body for chargepoint operators, has committed to investing more than £6 billion in charging infrastructure before 2030 and doubling the number of chargepoints over the next 12 months.

Grenfell James Technology Adoption Index

How does your business perform against others adopting financial tech? Find out with our interactive diagnostic:

1.

How does your business receive invoices?

A)

Invoices are mainly received in paper form

B)

Invoices are mainly received by email

C)

Invoices are emailed then automatically forwarded to a designated mailbox

2.

How are purchase invoices processed?

A)

Invoices are entered manually

B)

Invoices are attached to manually raised invoices

C)

Automated software (e.g. ReceiptBank, 1Tap, HubDoc etc) collates invoices

3.

How are accounts processed?

A)

Using Excel/paper-based

B)

Using Computer-based, offline software

C)

Using cloud-based accountancy software

4.

How often is business data revised?

A)

Data is updated annually

B)

Data is updated quarterly

C)

Data is updated monthly or more often

5.

How is banking updated for your business?

A)

Banking is updated manually

B)

Banking is updated by imports

C)

Banking is updated via a live feed

6.

How are bank payments made?

A)

Bank payments are manual

B)

Bank payments are made using bulk imports

C)

Bank payments are made directly via accounting software

7.

How are bank receipts reconciled?

A)

Receipts are chased and reconciled manually

B)

Receipts are chased and reconciled automatically

C)

A third-party platform is used to chase debts and collect fees

8.

How often are management reports produced?

A)

No reports are provided

B)

Reports are provided but often too late to be valuable

C)

Reports are automated with real-time information

Score 8-12:

Curious Exploration

Your financial technology phase is Curious Exploration

% of respondent businesses are in this phase too.

Switching accountancy systems may seem like an upheaval, but can be much more straightforward than most businesses imagine. From talking to our clients, they have found moving from paper invoicing and desktop-based accounting software to the cloud and apps quickly makes the transition process a worthwhile investment of time. Digital accounting solutions bring in streamlined processes, up-to-date business data and greater confidence in the accuracy of information when making financial decisions.

Grenfell James works with your team to fully assess the needs of your business and minimise the impact of any transitions for solutions we recommend.

Find out more about App Advisory

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Score 13-19:

Measured Discovery

Your financial technology phase is Measured Discovery

% of respondent businesses are in this phase too.

Once cloud accountancy software is in place, there’s still plenty of scope to improve your accountancy processes and make sure your business is maximising the benefits of adopting a digital accounting solution. Grenfell James assesses each business to understand how any implemented solutions are being used, identify areas for improvement and the needs of the business overall to support your business goals and achieve success.

Our team of experts can discuss a range of time-saving automation and get different apps and cloud-based solutions talking to create and manage a digital accountancy eco-system to help your business grow.

Find out more about App Advisory

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Score 20-24:

Bold Innovation

Your financial technology phase is Bold Innovation

% of respondent businesses are in this phase too.

You know the benefits of accounting technology and the impact it can have on your business goals. If you want to take it a step further, our team can conduct a systematic review of your processes, apps and business goals to ensure your digital accountancy ecosystem is keeping pace with the changing needs of a growing business.