Incentives for Plug-In Driving
With the ever-increasing environmental awareness, and drive for the UK to reduce the impact of motoring on the environment, 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
Plug In Car Grant
What? 35% of price, up to £3,000 off the price of a battery electric car
How? Deducted off invoice by the supplying Retailer
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
Road Fund Licence (RFL) and Vehicle Excise Duty (VED) Exemptions
What?
First Year: £0 payable for BEV and PHEV vehicles costing less that £40,000.
From year 2: £0 for BEV and £135 for PHEV (£10 saving vs petrol / diesel)
How?
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.
Charging Point Grant for Home
What? 75% up to £350 off a charging point for your home, under the government ‘homecharge’ scheme
How? Deducted off-invoice by your charging point supplier, subject to approval and meeting the criteria (for example, you must operate an electric vehicle and have off street parking and landlord permission)
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.
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
Capital Allowances
What? Favourable capital allowances for lower CO2 vehicles
How? Speak to your tax specialist
National Insurance Contributions
What? Favourable employers Class 1A National Insurance contributions for lower CO2 vehicles
How? Speak to your tax specialist