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Zero and Ultra Low Emission Fleet Vehicles | Alphabet.com

In recent years, the number of alternatives to traditional fuel vehicles has increased rapidly. More and more businesses are powered by 100% battery-electric vehicles (BEVs), plug-in hybrids (PHEV), traditional hybrids and, in some cases, hydrogen fuel cell cars.
With government incentives and grant schemes, switching to low emission fuels could offer your business significant savings and make your fleet more efficient.

A Plug-In Grant of up to £2,500 per car is available for government-approved cars that cost £35,000 or less with zero CO2 tailpipe emissions when driving.
Other grants are also available for motorcycles, mopeds, vans, taxis, large vans, and trucks.

The EV chargepoint grant now targets landlords/renters to provide funding of up to 75% towards the installation of an electric vehicle smart chargepoint unit at domestic property in the UK.
For further information on eligibility and how to apply, click <a href="https://www.gov.uk/government/collections/government-grants-for-low-emission-vehicles#ev-chargepoint-grant">here</a>.

The BIK tax system incentivises business drivers to choose low emission vehicles. The exact benefits vary depending on the car's CO2 emissions and it's all-electric zero emission range.
The BIK tax percentage for all company cars is set at 2% and will remain frozen at this rate until April 2025.
From that date, tax percentages for EVs will increase, with 1% increments applying up to 2027/28. Rates for all other vehicle bands will also rise – by one percentage point in 2025/26 up to 37% where they will be fixed until 2027/28.

As fuel duty is paid per litre of road fuel, fuel efficient vehicles will lead to savings. As electricity isn't subject to fuel duty, BEVs are duty exempt.

If you reimburse your drivers for charging costs (except on a business mileage basis using the Advisory Electric Rates), this may be taxable and we advise you to check using the HMRC online tool found here:
https://www.gov.uk/expenses-and-benefits-electric-company-cars

A new-registration, zero-CO2-emission car qualifies for a 100% first-year capital allowance until March 2025. Cars with CO2 emissions of 1-50g/km qualify for an 18% allowance, while cars with 50g/km+ qualify for a 6% allowance.

Full expensing replaces the super deduction scheme, offering 100% first year relief on qualifying equipment items, such as electric charging equipment, vans and trucks (provided the Plug-in Grant has not also been claimed) from 01 April 2023 until 31 March 2026.

Low- and zero-emission vehicles attract favourable rates of VED, including an exemption until March 2025 for cars with zero CO2 emissions.

Electricity used to charge a pure BEV at home attracts only a 5% VAT rate, compared to the 20% VAT rate applied to petrol, diesel, hydrogen, and workplace electric recharging.