Are there tax incentives for switching my fleet to EVs?

Yes, the government is offering tax incentives as well as credits, grants, and exemptions to encourage businesses to switch their fleets to electric vehicles (EVs).

Here are a few examples:

Benefit in kind

The Benefit in Kind (BIK) tax is much lower on electric cars than on petrol and diesel cars – just 2% until 2025. This will then increase by 1% each year up to 5% in 2027/28. This represents excellent savings for businesses and company car drivers.

Capital allowances

In addition, new and unused zero emission or fully electric cars purchased prior to 31 March 2025 are eligible for 100% first year capital allowances. This allows businesses to deduct the full cost of the vehicle against their taxable business profits – which could amount to considerable tax relief.

Congestion charges

Electric vehicles are also exempt from congestion, ULEZ and clean air zone charges, a significant benefit for businesses with vehicles that frequently travel in and out of cities.

The Workplace Charging Scheme

The Workplace Charging Scheme is a grant to provide support towards the costs of the purchase, installation and infrastructure of electric vehicle chargepoints at places of work. It covers up to 40 sockets per applicant and 75% of the total costs of the purchase and installation of the chargepoints, including VAT and capped at a maximum of £350 per socket.