John Ellmore from the Electric Car Guide explores the key schemes and business grants available to businesses looking to increase EV adoption in their fleets or workplaces.
Understanding these incentives gives businesses the opportunity to capitalise on the benefits offered by the UK Government and save money whilst transitioning to a greener form of business transport.
The article will explore the Workplace Charging Scheme, a government initiative designed to assist businesses in installing EV charging points. This scheme plays a pivotal role in facilitating businesses to support and encourage EV adoption by their employees and clients.
Additionally, it’ll discuss Salary Sacrifice Schemes, an innovative approach allowing employees to acquire EVs in a financially beneficial way, both for themselves and their employers.
Lastly, the Plug-in Van and Truck Grant is another significant incentive that will be covered. This grant offers substantial financial support to businesses investing in electric commercial vehicles, easing the financial burden of transitioning to a greener fleet.
The Workplace Charging Scheme
The Workplace Charging Scheme (WCS) is a government initiative designed to support businesses in adopting EVs. This scheme provides financial support for the installation of electric vehicle charging points at workplaces.
The primary objective of the WCS is to reduce the upfront costs associated with the installation of EV charging infrastructure, thereby encouraging businesses to facilitate and promote EV adoption among their employees.
The WCS is open to any business, charity, or public authority, with certain stipulations: The applicant must have dedicated off-street parking and demonstrate a need or intent to encourage EV use among their workforce.
To qualify for the scheme, businesses must show evidence of their capability to install the charging equipment and maintain it. They should not have previously received funding for the same parking spaces. Additionally, the installation must be carried out by an OZEV-approved installer.
The scheme offers up to £350 off the cost of purchasing and installing a single charge point, and businesses can apply for support for up to 40 sockets. This substantial subsidy can significantly lower the initial cost barrier, making it more feasible for businesses to set up charging stations.
By tapping into the Workplace Charging Scheme, businesses can demonstrate a real commitment to sustainability while offering employees and clients the convenience and benefit of charging their EVs on the business premises.
Salary Sacrifice Schemes for EVs
Salary Sacrifice Schemes for electric vehicles are innovative arrangements where employees agree to give up a part of their pre-tax salary in exchange for using an electric vehicle. This scheme is a beneficial agreement as it allows employees to drive a new EV while reducing their income tax and National Insurance contributions. The main consideration is that an employee’s salary does not fall below the National Minimum Wage.
Employers can benefit significantly from these schemes. By offering EVs as a part of the salary package, businesses can provide staff with a quality benefit at practically zero cost. For employees, the appeal lies in accessing a new EV without the need for a large upfront payment, coupled with tax savings. This arrangement often includes insurance, maintenance, and sometimes charging costs.
To implement a Salary Sacrifice Scheme, businesses first need to partner with a scheme provider. The provider helps in setting up the agreement, ensuring compliance with tax regulations, and managing the fleet of EVs.
There are numerous salary sacrifice providers in the UK market, each offering unique features and benefits. For businesses looking to implement these schemes, it’s imperative to research what salary sacrifice schemes offer in terms of product features and terms and conditions. This involves evaluating various aspects like the range of vehicles offered, early termination contract protection, additional services like maintenance and insurance, and the level of support provided by the scheme.
Choosing the right provider is crucial as it affects not just the financial attractiveness of the scheme but also its overall success and acceptance among employees.
Salary Sacrifice Schemes for EVs are a win-win for both employers and employees, facilitating a switch to electric cars while offering financial benefits.
Plug-in Van and Truck Grant
The Plug-in Van and Truck Grant is a government initiative designed to encourage businesses to adopt electric commercial vehicles. This grant reduces the cost of purchasing new electric vans and trucks, making them more affordable and appealing for businesses.
The grant covers a range of electric vehicles, including small and large vans, and trucks. The eligibility of the vehicle depends on factors like its weight, battery capacity, and range.
To be eligible for the grant, businesses must purchase vehicles that meet the government’s criteria for zero-emission vehicles. The criteria include minimum range and safety standards. The vehicles must be brand new and not modified after first registration.
Businesses don’t apply for the grant directly. Instead, the discount is automatically applied at the point of purchase. The vehicle dealer or manufacturer will include the grant in the vehicle’s price if it’s eligible. The grant can cover up to 20% of the cost of a new electric van or truck, with a maximum cap depending on the vehicle type. This significant subsidy can make a considerable difference in the cost for businesses considering commercial EV adoption.
While the initial purchase price of electric vehicles can be higher than their diesel or petrol counterparts, the total cost of ownership over time can be lower due to reduced fuel and maintenance costs. The grant further lowers this cost, making the long-term financial case for EVs even more compelling for businesses.
The final word on business grants and tax breaks for EV adoption
As we have explored, there are still substantial incentives and supportive schemes available for businesses looking to increase the adoption of EVs.
From the Workplace Charging Scheme, which reduces the cost of installing EV charging infrastructure, to the innovative Salary Sacrifice Schemes that make EVs more accessible to employees, and the Plug-in Van and Truck Grant that supports the adoption of electric commercial vehicles, the opportunities are out there!
The financial benefits, in terms of tax breaks and reduced operational costs, make a strong case for businesses to consider EVs as a viable option. Additionally, by adopting EVs and supporting infrastructure, businesses can demonstrate their commitment to sustainability, enhancing their corporate image both internally and externally.
Looking ahead, the landscape of EV adoption in the business sector is poised for growth, driven by both technological advancements and supportive government policies. Businesses that take early steps towards embracing these changes are likely to benefit the most, not only in terms of financial incentives but also in future-proofing their operations against a backdrop of evolving environmental regulations.
