Incentives To Go Electric
The UK Government recently announced that their ban on future sales of petrol and diesel vehicles has been brought forward from 2040 to 2035, in an effort to tackle climate change. As a hybrid vehicle consists of an electric motor and a combustion engine, these will also be on the future ban list.
We regularly get asked; further to being environmentally friendly, what’s the benefits of switching to an electric vehicle? Therefore, have complied a guide to support your decision.
In an effort to reduce the number of petrol and diesel vehicles on UK roads, the UK Government has continually increased both road and company tax on combustion engine vehicles over the past few years.
A purely electric vehicle consists of a battery and an electric motor; therefore, no combustion is taking place and there’s no need for an exhaust system, which produces harmful gasses. You can read our Electric Vehicle F.A.Q page to ensure you know the difference between hybrid and all electric technology.
Further to being environmentally friendly, electric cars are subject to many tax incentives for both personal and business users. Which can save you money, whilst reducing your carbon footprint!
Due to being zero emission compliant, purely electric vehicles which cost under £40,00 are exempt from paying road tax. Possibly saving you hundreds of pounds per annum.
Hybrid owners will pay £140 per year to tax a vehicle which costs under £40,000.
Company car drivers using a purely electric vehicle, which was registered prior to 6th April, will benefit from 0% Benefit-In-Kind company car tax from the tax year 6th April 2020 – 5th Aril 2021.
This could save you thousands on your company car tax; as demonstrated below.
Hybrid vehicles with a pure electric range of over 130 miles and produce less than 50g/km of emissions are also entitled to the 0% Benefit In Kind discount.
Plug-In Car Grants
Low emission plug-in vehicles are entitled to a grant on the following vehicles;
•BMW i3 and i3s
•DS 3 Crossback E-Tense
•Hyundai IONIQ Electric
•Hyundai KONA Electric
•Kia Soul EV
•Mercedes-Benz B-Class Electric Drive
•Mercedes-Benz eVito Tourer
•MG ZS EV
•Nissan e-NV200 (5-seater and 7-seater)
•SEAT Mii electric
•Škoda Citigo-e iV
•Smart EQ fortwo
•Smart EQ forfour
•Tesla Model 3 Standard Range Plus
Cars must be less than £50,00 to be eligible for the grant and it will cover 35% the cost of the vehicles purchase, up to a maximum of £3000. The vehicle dealership will automatically include the grant in the value of the vehicles price. For more info, visit Gov.uk.
Electric Van Grant
As with electric cars, a grant is available for the purchase of the following new electric vans;
•BD Auto eTraffic
•BD Auto eDucato (3.5 tonnes)
•Ford Transit Custom PHEV
•Mitsubishi Outlander Commercial
•Nissan e-NV200 (cargo van)
•Renault Kangoo ZE
•Renault Master ZE
•LDV EV80 van
•LDV EV80 chassis cab
The grant will cover 20% the purchase cost of these vehicles, up to a maximum of £8,000.
Electric Charing Grant
You could be eligible for a grant up to £500 including VAT for the installation of a home charging point, through the Electric Vehicle Homecharge Scheme.
The Workplace Charging Scheme
The WCS is a voucher-based scheme, which can cover up to 75% of the costs associated with purchasing and installing electric charging points, up to a maximum of £350 per socket. The grant is available to a maximum of £40 sockets, for many charities and public sector organisations.
On-Street Residential Chargepoint Scheme
The ORCS grant is available for local authorities, assisting with the costs associated with installing on-street residential charging points.
The scheme is run by Energy Saving Trust on a first come first serve basis for local authorities.
HMRC Advisory Fuel Rate
As of 2018, The Advisory Electric Rate (AER) was introduced at just 4 pence per mile.
Advisory Fuel Rates apply to employers who reimburse their employees for business travel, attended in their company vehicle, or for employees repaying the cost of fuel that was used for private travel.
If you’d like to know more about advisory fuel rates, visit the Gov.uk website.
Range & Power
Increasing innovation has eased consumer concerns regarding electric vehicle range. Electric motors have been widely praised for their instant response, which often produces fast acceleration and high torque figures.
Pure electric vehicles such as the Tesla Model S 85D, has an estimated driving range of 253 Miles! Using all wheel drive technology, the electric motor produces 422bhp and 600n/m of torque, capable of achieving 155mph and does 0 – 60mph in just 4.4 seconds.
Proving that power doesn’t need to be sacrificed for range!
Need more information? Call us: 0161 928 3456
Or email your questions to: [email protected]