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Struggling firms 'can make savings through electric cars'

Date Added: 08/07/2011  

Firms approaching a winding up order have been advised they could save lots of money by using electric vehicles rather than petrol or diesel models.

Lem Bingley, author of the Greenmotor.co.uk blog, stated one of the advantages of using greener cars is companies no longer have to make a national insurance contributions.

He explained this is because "the government sees a company car as being in lieu of salary".

Green cars will also count as an asset for an organisation in financial difficulties, which means they should be able to reduce their tax bill as a result.

"The situation with an electric car is very, very favourable - companies are allowed to claim a lot more money back off tax than if it was a petrol or diesel car," said Mr Bingley.

He added it will work out much cheaper in the long run for a company to provide their employees with an electric vehicle such as the Nissan Leaf, compared to a model such as a Volkswagen Golf BlueMotion, even though this conventional car has low emissions.

Mr Bingley predicted the rise in the usage of green cars will be forced through by companies - such as those facing a winding up order - looking to take advantage of the tax breaks and other benefits they will receive as a result of purchasing electric vehicles for their members of staff.

This is likely to take place over the next couple of years, the expert noted.

But firms facing a winding up order may be tempted to wait for a while, as Mr Bingley stated there is a deficiency in quality green cars on the market at the moment.

He explained one of the models put forward as a success story is the G-Wiz - which was famously featured on the Top Gear television programme - but this is actually classed as a quadricycle rather than a car.

Posted by Michael Beam 

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