Current Tax Incentives in the UK

Seize the Power of Electrification: Unlocking Tax Incentives for Your Electric Fleet in the UK

Converting your fleet to electric vehicles (EVs) isn't just a step towards a greener future—it's a strategic move that can significantly impact your bottom line. The UK government is actively encouraging businesses to embrace electric mobility through a range of compelling tax incentives. Discover how electrifying your fleet can lead to substantial financial advantages:

Workplace Charging Scheme (WCS):

For businesses, the Workplace Charging Scheme (WCS) grant is a voucher-based scheme that contributes towards the installation of an electric charger. It covers up to 75% of the cost, up to a maximum of £350 for each socket. How many chargepoints can each workplace claim? You can claim for 40 sockets. Workplace Charging Scheme: guidance for applicants - GOV.UK (www.gov.uk)

Reduced Company Car Tax:

Company car tax rates for electric vehicles are considerably lower compared to traditional internal combustion engine vehicles. This not only benefits your business but also makes electric company cars more attractive to employees. EVs are currently at 2% - with ICE vehicles ranging from 15% to 37% of the P11d value.

Reduced Fuel Benefit Charge:

For company cars that employees use for personal journeys, the fuel benefit charge is significantly lower for electric vehicles. This can lead to considerable tax savings for both the business and the employee.

Zero Road Tax (Vehicle Excise Duty):

EVs are exempt from Vehicle Excise Duty (road tax), and the following standard rate after the first year, which means ongoing cost savings for your electric fleet. This exemption can add up.

First year rates for ICE vehicles with a stepped increase based on Co2 levels, range from £25 to £2000 pounds.

Some example - Co2 - 76 - 90 g/km - £100

Co2 - 171-190 g/km - £800

Co2 - 226-255 g/km - £1700

This is followed by a standard rate of £140 per year across the board – Cars over £40,000 pay an additional £310 supplement for 5 years.

Climate Change Agreement (CCA) Scheme:

If your business is eligible for the Climate Change Agreement scheme, transitioning to EVs can lead to reduced carbon reduction commitments and associated costs.

Clean Air Zones and Congestion Charge Benefits:

In areas with clean air zones or congestion charges, EVs often enjoy exemptions or reduced rates. This not only lowers your operational costs but also streamlines your fleet's movements.

Electrifying your fleet in the UK isn't just about embracing sustainability—it's a strategic decision that can revolutionize your business's financial landscape. These tax incentives provide a compelling reason to make the switch, offering long-term savings, improved operational efficiency, and a positive image as an environmentally conscious company. Seize the power of electrification and discover a brighter future for your fleet and your finances.