New legislation in the UK is using the carrot as opposed to the stick in an effort to get Britain driving green.
The government hopes to meet their targets for a greener Britain by offering tax breaks to UK drivers who choose low emission vehicles.
This has also been good news for businesses because they can take advantage of these breaks by changing their company vehicles.
Graphic supplied by The Accountancy Partnership
Business Tax Savings
Vehicles that produce less than 100mg of CO2 per kilometre are going to be exempt from road tax. Given that prices for road tax in the UK can vary from around £100 right up to £475 for the most eco-unfriendly vehicles this could result in quite a saving.
Company vehicles have a separate tax brand and cars that emit the lowest emissions find themselves in the lowest tax bracket. This is more good news for businesses; particularly if they are running a fleet of vehicles.
Lower Insurance Premiums
Low emission vehicles are coming in all shapes sizes too with close to 500 models currently available that fall into the A number of British insurance companies are offering lower premiums to environmentally friendly vehicles; so shop around when your renewals are due.
Zero Congestion Charges
With London being the largest city in the UK, and the base for many business HQ’s and warehouses, the exemption from the congestion charge is another piece of good news for low emission drivers. The congestion charge is a £10 daily charge and it is required in most of London’s city centre. So, say you need to drive in London 5 days a week for 45 weeks of the year then a low emission vehicle will save you up to £2250 a year on congestion charges alone. Fines for not paying the charge can be as high as £187.
Hybrids Using Less Fuel
Lastly, a number of hybrid vehicles in the UK use diesel. Now, while this fuel is considered to be less environmentally sound than petroleum, hybrids use much lower amounts and therefor emit less CO2. It is also far cheaper to purchase diesel at the pumps.
Businesses often need a lot of encouragement to go green and, by offering them a chance to save money; I think the UK government has got it right. Hopefully these positive measures should see a more environmentally sound, CO2 conscious, driving population flourish in the UK.