Tax and Financial Incentives

Incentives for Plug-In Driving

With the increasing environmental awareness around the automotive industry there are a range of incentives available for drivers making the transition to electric motoring.

Please find below a summary of the incentives available.  The below is intended to be for informative purposes only and many have specific terms, conditions and restrictions. Please refer to the links directing you to the relevant websites for full details.

Financial & Tax Incentives for Drivers

Company Car Tax

What? Zero or low rates Benefit In Kind tax for company car drivers.  This significantly reduces the price you would pay vs a petrol or diesel car

How? Calculated by your employer or company car supplier

Find out more here



Road Fund Licence (RFL) and Vehicle Excise Duty (VED) Exemptions


First Year: £0 payable for BEV and PHEV

From Year 2: £0 for BEV and £155 for PHEV (£10 saving vs petrol / diesel)

Additional £355 for 5 years from year 2 if list price above £40,000


First Year: not charged on the vehicle invoice from your supplying Retailer. 

From Year 2: car tax still needs to be renewed y the owner/driver, even for BEVs with £0 payable.

Find out more here

Electric Vehicle Charging Point Grant if you Own or Rent a Flat

What? 75% up to £350 off a charging point for your flat or rented accommodation, subject to approval and meeting the eligibility criteria (for example you own and live in a flat and your home has its own private off-street parking space).

Find out more here.

London Congestion Charge Exemption

What? A exemption of the daily congestion charge payable if you enter the zone in central London

How? Apply for an exemption online directly with TfL: note exemptions are not awarded automatically.

Find out more here

Other Local Incentives

What? These vary, but many local authorities offer incentives for plug-in vehicle drivers.  These range from free parking permits, to free charging, or use of bus/taxi lanes

How? This varies depending on your local authority

More Info: Check with your local authority.

Additional Benefits for Businesses

Charging Point Grant for Workplaces

What? 75% up to £350 off up to 40 charging point at a workplace, under the government workplace charging scheme

How? Apply for a voucher on the government website and use with an approved charging point supplier

Find out more here


Capital Allowances

What? Favourable capital allowances for lower CO2 vehicles

How? Speak to your tax specialist

Find out more here


National Insurance Contributions

What? Favourable employers Class 1A National Insurance contributions for lower CO2 vehicles

How? Speak to your tax specialist

Find out more here