Primarily two things – power and Benefit in Kind (BiK). Although there might be charges for fair wear and tear and additional mileage at the end of the lease term.
Power. The cost of the electricity to charge a car with a 250-mile range is between £2 and £4*, a lot less than cost of petrol or diesel.
BiK. This is calculated as a percentage of the car’s price that is added to taxable earnings. For zero emission cars, this is very low, especially compared to internal combustion engine cars which can be as high as 37%** depending on their CO2 emissions.
Zero-emission vehicle Benefit-in-Kind rates for the coming years:
- 1% for 2021/22.
- 2% for 2022/23.
- 2% for 2023/24.
*Check with your electricity supplier.
**Source: HMRC 2020