Making the switch from fossil fuel powered motoring to electric vehicles and EV charging infrastructure?
Here, we’ve assembled a list of schemes and grants currently available for individuals and businesses looking to reduce the cost of charge point installation, alongside incentives for EV drivers, including tax breaks and loans.
Domestic charge point installation
Electric Vehicle Homecharge Scheme
- Enables individual buyers of eligible EVs to receive a grant for up to 75% (capped at £350, inc. VAT) of the total purchase and installation costs of one EV charger for their home. Company cars and leased cars are also eligible.
Electric Vehicle Homecharge Scheme: vehicle applications – GOV.UK
EV charger grant for homes in Scotland
- The Energy Saving Trust enables individual buyers of eligible EVs to receive a grant for up to £300. This is towards the total purchase and installation costs of one EV charger for their home.
Incentives for commercial charge point installation
Workplace Charging Scheme (WCS) grant
- A voucher-based scheme that provides the upfront costs for the purchase and installation of EV charging points at workplaces. Firms can cover 75% of all purchase and installation costs. This is up to a maximum of £350 per socket and for a maximum of 40 charging points across all sites.
Electric Vehicle Homecharge Scheme: vehicle applications – GOV.UK
EV charger grant for workplaces in Scotland
- The Energy Saving Trust enables businesses to receive funding for the purchase and installation costs of EV chargers for their workplace. The exact number of EV chargers for which financial support can be provided depends on the amount and type of company and staff owned EVs.
Benefit in Kind exemption on charging stations
- No taxable benefit will arise where employers that provide charging stations for the use of their employees. This means charging at work is completely free for employees.
BiK exemption for company charge points
Incentives for UK EV drivers
As well as EV charging post incentives, there are a range of other financial advantages for EV drivers. We have summarised current open schemes here:
Zero emissions cars are exempt from road tax
- Opting for a hybrid or plug-in hybrid significantly reduces the size of the savings however. Also, any car that emits less than 75g/km of CO2 is exempt from the daily congestion charge in London. Also, some local authorities offer free/discounted parking to EVs.
Gov.UK: Vehicles exempt from vehicle tax
Low-emission vehicles eligible for a plug-in grant
- This grant offers buyers of eligible vehicles (EVs that produce less than 50g/km of CO2) 35% off the upfront cost to purchase such vehicles, up to a maximum of £2,500. Equivalent schemes for motorcycles, mopeds, vans, taxis, and large trucks are also available with slightly varying conditions.
Low-emission vehicles eligible for a plug-in grant
Interest-Free Vehicle Loan
- Drivers in Scotland can take advantage of an interest-free loan of up-to £28,000 to support the purchase of a new electric car or van. There is a similar loan of up to £20,000 for the purchase of second-hand EVs.
Interest-free electric vehicle loan
Claiming capital allowance
- As a business, you can claim capital allowance on company cars and other vehicles. These means that the allowance can be deducted from your profits before you pay tax, therefore reducing the tax you pay. Electric vehicles offer much greater allowance, and some rates are not available to polluting vehicles.
Claim capital allowances: Business cars
Car fuel benefit charge does not apply to electric charging
- As electricity is not classed as a road fuel, the car fuel benefit charge does not apply to electric charging. If an employee uses a company car, no Benefit in Kind occurs when charging their vehicle at the workplace. In addition, electricity is only charged at 5% VAT, which is significantly lower than the 20% VAT charged for combustible fuels.
Tax benefits for ultra low emission vehicles
Company Car Tax (Benefit in Kind)
- Since 6th April 2020, both new and existing Tesla cars have become eligible for a 0 percent BiK (benefit in kind) rate for the 2020/21 tax year. The BiK rate will rise to 1 percent in 2021/22 and to 2 percent in 2022/23, being held at 2% for 2024/24 & 2024/25. The average petrol or diesel vehicle has a BiK rate of 20 to 37 percent.
Other Incentives
Local councils across the country offer incentives for the installation and usage of EV charging infrastructure and vehicles. Therefore, when you are thinking about making the transition, contact your local authority to find out the exact details.
Versinetic can help you accelerate your EV product development at any point during the design process. Talk to our experts and find out how we can help:
