Electric vehicle technology is evolving rapidly, however purchase costs for many electric cars and vans are still more expensive than some equivalent petrol and diesel vehicles. While the ongoing running costs are highly attractive to businesses, the initial investment costs of electric vehicles can be significant. Your business may be eligible for grants and other support to make electric vehicles an easier choice.
Grant for electric cars
Your business could get 35 per cent (up to £4,500) off the price of an electric car. Electric cars can form part of your fleet or be a company car option.
From 9 November 2018 the grant level will be reduced to £3,500.
Grant for electric vans
Your business could get 20 per cent (up to £8,000) off the cost of buying an electric van. Electric vans are a very practical option for many businesses, offering the flexibility and similar loading capacities of traditional diesel and petrol vans.
Tax incentives for electric vehicles
Owning or operating an electric vehicle can attract various tax benefits, including exemptions from:
- fuel duty
- vehicle excise duty
- company car tax
- van benefit charge
- fuel benefit charge
Electric vehicles have enhanced capital allowances benefits with a 100 per cent first-year allowance. You can claim the entire cost of an electric car or van against taxable profits in the year of purchase - see first-year allowances: the basics.