Business grants and financial incentives for fleet electrification
A range of financial support and benefits exist for Electric Vehicle (EV) users and fleet managers to incentivise businesses on the road to zero.
While these aren’t always as generous as they were in previous years (and won’t be around forever), there are still plenty of financial benefits to make use of right now.
Small van grant
35% of the purchase price (up to £2,500)
To be eligible for a grant, the vehicle must:
- be less than 2,500 kilograms (kg) gross vehicle weight
- have CO2 emissions of less than 50g/km
- be able to travel at least 96km (60 miles) without any emissions
Large van grant
35% of the purchase price (up to £5,000)
To be eligible for a grant, the vehicle must:
- be between 2,500kg and 4,250kg gross vehicle weight
- have CO2 emissions of less than 50g/km
- be able to travel at least 96km (60 miles) without any emissions
Chargepoint grants
With home and workplace charging schemes available as of July 2023, charger installation is more affordable than you might think. The two Workplace schemes below can be used for the same site, but not the same chargepoints.
Workplace
Workplace Charging Scheme
(up to £14,000 per company)
- Available to all qualifying businesses
- Up to £350 per socket
- Maximum of 40 sockets per company (across up to 40 sites)
Workplace
EV infrastructure grant for staff and fleets
(up to £75,000 per company)
- Available to businesses with fewer than 250 employees
- Up to £350 per socket (or £500 per parking space enabled with supporting infrastructure)
- Maximum of £15,000 per grant/site for up to 5 sites
Domestic
EV chargepoint grant
(up to £350 per household)
- Available to people who own or let a flat or residential property with either a private, off-street parking space or access to adequate on-street parking
- Up to £350 per household
- You must use have an eligible leased vehicle/company car/owned vehicle (where you're the registered keeper)
Other incentives
Vehicle Excise Duty (VED)
VED, commonly known as Road Tax, is currently set to £0 for electric vehicles both on registration and in subsequent years.
However, this is set to change in April 2025, when EVs will begin pay VED in the same way as petrol and diesel vehicles.
Van Benefit Tax (VBT)
A nil rate of tax currently applies to zero-emissions vans within Van Benefit Charge, which means that you could allow your electric van drivers unrestricted private use of their van as a tax-free employee benefit.
Benefit-in-Kind (BiK) tax
EV company car drivers (whether provided by the company or through a Salary Sacrifice scheme) pay a reduced rate of BiK (or ‘company car tax’). These rates are currently set for Battery Electric Vehicles at 2%, rising to 3% for the tax year 2025/26, or for hybrid electric vehicles at 2-14% rising to 3-15% depending on electric range.
