How Your Business Can Take Advantage of Electric Vehicle Incentives

As the UK moves toward a greener, more sustainable future, businesses have a great opportunity to reduce their carbon footprint and benefit financially by transitioning to electric vehicles (EVs). Now is the perfect time to make the switch with a range of government and company incentives available. Businesses can take advantage of government grants and tax breaks to reduce costs while enhancing their sustainability efforts. At Switch365, we’re here to help you navigate these incentives and ensure your business makes the most of the available opportunities.

Government Initiatives for EV Adoption

The UK government offers several initiatives to support businesses in adopting electric vehicles. These schemes help reduce the initial cost of EVs, and charging installation and provide long-term savings on fleet management.

Workplace Charging Scheme

One of the most accessible options is the Workplace Charging Scheme (WCS). This initiative provides businesses with financial support to install charging points at their premises. Businesses can claim up to £350 per socket, covering up to 75% of the installation cost. Having convenient on-site charging is essential for businesses with staff or fleet vehicles that rely on electricity. It’s a straightforward way to make the transition smoother and more cost-effective.

In addition, businesses can benefit from the Plug-in Van Grant, which offers a discount on the purchase of electric vans. This grant can cover up to 35% of the vehicle's purchase price, with a maximum saving of £2,500 for small vans and £5,000 for large vans, helping to reduce the financial strain on businesses looking to transition their delivery or service vehicles to electric. This is an excellent opportunity for businesses in sectors like logistics, retail and service industries, where vehicles play a central role in day-to-day operations.

For businesses looking to install charge points for staff and fleet vehicles, the EV Infrastructure Grant covers up to 75% of installation costs, with a maximum of £15,000 per business. Unlike the Workplace Charging Scheme, which funds only charge points, this grant also includes infrastructure upgrades to support future growth. Investing in charging infrastructure today helps your business stay ahead, ready for a future where EVs dominate the roads.

Enhanced Capital Allowances (ECAs)

Is a government backed incentive that allows companies to claim 100% of the cost of energy-efficient equipment, such as EV charge points, against their taxable profits in the first year. This means businesses can fully offset the upfront expense of installation, significantly improving cash flow while aligning with sustainability goals. By investing in eligible equipment, your workplace can reduce its environmental impact, meet green initiatives and gain a competitive edge in an increasingly eco-conscious market.

Reduced Benefit-in-Kind (BIK) tax rate

For electric company cars, this is currently set at just 2% for the 2024/25 tax year, compared to up to 37% for petrol or diesel vehicles. This tax break makes EVs an attractive option for employees, potentially saving drivers hundreds, or even thousands, of pounds annually. For example, an employee with a £40,000 EV could save over £4,000 a year in BIK tax compared to a similarly priced petrol car. With the UK government’s plan to ban petrol and diesel cars by 2035, businesses that adopt EVs now can benefit from these savings and avoid future regulatory challenges.

Company Initiated Incentives for EV Adoption

In addition to government incentives, businesses can create their own internal programs to encourage employees to adopt electric vehicles. Offering EV car sharing programs is one way. By providing a fleet of electric cars for staff to use when needed, businesses can reduce the number of company cars on the road and give employees easy access to EVs without requiring them to purchase one. This also helps maximise fleet usage, ensuring that vehicles are being used efficiently and sustainably.

Another effective initiative is salary sacrifice schemes. In this program, employees can lease electric vehicles through a salary sacrifice arrangement, where a portion of their salary is deducted before tax to cover the cost of the lease. This not only makes it more affordable for employees to drive EVs, but it also allows businesses to offer a green benefit to staff while reducing their taxable income. Employees can enjoy the benefits of driving a new, low-emission vehicle while businesses benefit from the tax advantages.

For businesses that need a flexible solution, the EV fleet subscription service offers an excellent alternative to ownership. With this service, companies can subscribe to a fleet of electric vehicles on a monthly basis, giving them access to the latest models without long-term commitment or high upfront costs. This is ideal for businesses with fluctuating needs or those looking to test the waters before committing to purchasing EVs for their fleet. This model also ensures that your fleet remains up-to-date with the latest technology, all while reducing maintenance costs.

Additional Benefits and Incentives

Alongside these government and company incentives, businesses can benefit from a range of other strategies to maximise their EV adoption. For instance, public sector contracts that require a green fleet or carbon reduction strategies may provide additional funding or priority in winning contracts for businesses that already use electric vehicles. Businesses can also gain from eco-friendly branding by embracing sustainability initiatives, which can help attract environmentally-conscious customers and clients.

Switch365 can help businesses explore completely green energy contracts. While we cannot offer solar panels directly, we can help businesses secure energy contracts that provide 100% sustainably sourced energy. By powering your EV fleet and facilities with green energy, you can ensure that your entire operation remains environmentally responsible, supporting your commitment to a greener future.

Conclusion

The transition to electric vehicles doesn’t have to be a daunting task for businesses. With a wide range of government and company incentives available, there are many ways to make the switch easier and more cost-effective. From grants for EV infrastructure to tax breaks for adopting electric company cars, these incentives can provide significant financial relief and help businesses reduce their environmental impact.

Switch365 makes going green easy. Whether it’s securing government grants, implementing a company car-sharing scheme, or exploring the latest EV fleet subscription services, we’ll guide you through the process of integrating electric vehicles into your operations. Embrace the future today and join the growing number of businesses leading the way in sustainability.