COMPANY car drivers could save around £7,376 by switching to 100% electric car.

The figure has been calculated by Go Ultra Low by comparing average electric and diesel models, includes a Benefit in Kind rate saving of £3,974 for 40% taxpayers in addition to an average £3,842 fuel saving over a typical three-year cycle of company car ownership.

Poppy Welch, head of Go Ultra Low, said: “Businesses should not be put off by the upfront purchase price of electric vehicles, but should instead focus on savings they offer over the life of the vehicle. However, we know that many questions and concerns still remain in regards to electric vehicles and their viability for business.”

Government grants provide up to £4,500 off the price of pure electric cars, £2,500 off the price of eligible plug-in hybrid cars, and up to £8,000 off the price of a new electric van.

Businesses can also take advantage of the Workplace Charging Scheme, which provides grants of up to £300 per charging socket.