Electric vehicles for business

Electric vehicles incentives for business

Guide

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

The plug-in car grant scheme closed to new orders on 14 June 2022.

The scheme supported the creation of a mature market in the UK, helping to increase the sales of fully electric cars from less than 1,000 in 2011 to almost 100,000 in the first 5 months of 2022 alone. Due to this, the UK government is now refocusing funding towards the main barriers to the EV transition, including public charging and supporting the purchase of other road vehicles where the switch to electric requires further development.

Grant for electric vans

Grants are available of up to £5,000 for large vans and £2,500 for small vans, with a limit of 1,000 per customer per year.

Find out more about the types of van eligible for a plug-in grant.

It’s not only vans which can attract a plug-in grant - the eligible categories are:

  • wheelchair accessible vehicles
  • motorcycles
  • mopeds
  • small vans
  • large vans
  • taxis
  • trucks

Not all low-emission vehicles will get a grant. Only vehicles that have been approved by the government are eligible for a grant. Find out more about the grants, specific vehicle types and eligibility information.

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

Tax incentives for electric vehicles can save drivers over £2,000 a year.

You can claim capital allowances for a business electric car or van - see capital allowances.

Find out more about the tax benefits of electric vehicles.