Grants & Incentives

There are numerous grants and incentives available for EV drivers, our comprehensive list before will take you through them.

Plug-in Car Grant

The Government Plug-in Car grant will pay for 35% of the purchase price for eligible vehicles, up to a maximum of £1,500. The car must have a list price below £32,000, however any optional equipment selected by the customer is not included in the calculated list price. Eligible cars must also have CO2 emissions of less than 50g/km, be able to travel at least 70 miles without emitting any CO2 and be on the OZEV’s approved list.

You will not need to do anything to claim the grant if you want to buy one of these vehicles - the dealer will simply include the value of the government grant therefore reducing your purchase price. You can find more information and a full list of eligible vehicles here: https://www.gov.uk/plug-in-car-van-grants

Electric Vehicle Homecharge Scheme

The Office of Zero Emission Vehicles (OZEV) currently provides financial support for EV owners looking to install a charge point at home. The Electric Vehicle Homecharge Scheme (EVHS) provides 75% or up to £350 towards the cost of a charge point and its installation.

All you need to qualify:

• Customers must provide evidence of keepership, lease, be named as the primary user of an eligible electric vehicle or have a vehicle on order to be able to qualify for the grant. A full list of eligible vehicles can be found at: https://www.gov.uk/government/collections/government-grantsfor-low-emission-vehicles
• The grant must only be claimed by installers which have been authorised by OZEV and have approval from a charge point manufacturer to install their accredited equipment (All EV Carshop installers have this as a minimum)
• The date of installation must not be more than 4 months ahead of the date of delivery or start date of vehicle use.

If you’re interested in getting a home charge point installed, get in touch. We are impartial, expert and act as your advocate on the road to electric.

Workplace Charging Scheme

Interested in some EV chargers for work?

The Workplace Charging Scheme (WCS) is a voucher-based scheme designed to provide eligible businesses, charities and public sector organisations with financial support towards the costs of the purchase and installation of EV charge points.

The contribution is limited to the 75% of purchase and installation costs, up to a maximum of £350 for each socket and a maximum of 40 across all sites for each applicant. These incentives will not be around forever as uptake increases so if its something you know you will need to have done in the future, now is probably a good time to make that commitment.

If you’d like to know more about getting some charger installed at work or have any sort of question about installing workplace charging do get in touch. 

London Congestion and ULEZ Charge Exemption

One of the great benefits of having an EV for regular city drivers is the exemption of electric vehicles from paying Congestion and ULEZ charges.

Congestion Charge

One of the great benefits of having an EV is Congestion and ULEZ exemption.

The Congestion Charge is a £15 daily charge incurred by drivers who enter the London Congestion Charge zone between the hours of 07:00-22:00 and is applicable every day with the exception of Christmas Day (the 25th December).

There is currently a ‘Cleaner Vehicle Discount’ which exempts some vehicles from having to pay the congestion charge. Currently, only vehicles that meet Euro 6 standards (petrol and diesel) and that emit no more than 75g/km of CO2 and have a minimum 20 mile zero-emission capable range will qualify for the 100% cleaner vehicle discount.Though it is worth noting that from 25 October 2021, the cleaner vehicle discount will change so that only battery electric or hydrogen fuel cell vehicles will be eligible.

You can check the CO2 emissions of your car on the V5C registration document. If the Euro standard of your vehicle is not shown on the V5C you can check it with the franchised dealer or the vehicle manufacturer.

More information on the exemption can be found here.

ULEZ 

A ULEZ or Ultra Low Emission Zone charge also exists in the same area as the Congestion Charge in London. This is in operation 24 hours a day, 7 days a week, every day of the year (except Christmas Day.)

ALL pure Electric Vehicles are exempt from the ULEZ charge.

If vehicles don’t meet the ULEZ emissions standards or their drivers must pay a daily charge to drive within the zone. This is:

• £12.50 for most vehicle types, including cars, motorcycles and vans (up to and including 3.5 tonnes)
• £100 for heavier vehicles, including lorries (over 3.5 tonnes) and buses/coaches (over 5 tonnes)

From 25 October 2021, the ULEZ will be expanding to create larger zone up to, but not including, the North Circular Road (A406) and South Circular Road (A205). Find out how to prepare for the ULEZ expansion. 

Don’t have an EV yet, search available electric vehicles here.

No Road Tax

 Electric Vehicles are currently exempt from the annual Vehicle Excise Duty all UK motorists pay in order to drive on British roads, more popularly known as ‘Road Tax’

Interestingly, from April 1st 2020 until March 31st 2025 all zero emission vehicles will also be exempt from the Vehicle Excise Duty ‘expensive car supplement,’ usually applied to all cars with a list price above £40,000. This equates to a further annual saving of £325 for five years from the second time a vehicle is taxed regardless of the electric vehicle's initial purchase price.  

It is worth noting that even if your EV qualifies for the exception of VED you still have to tax your vehicle annually on the HMRC's website: https://www.gov.uk/vehicle-tax. 

Company Car Tax (Benefit In Kind)

 If you have a company car you can also make huge savings by going electric, a big part of the phenomenal growth in EVs over the last year!

Company Car Tax (officially known as Benefit in Kind tax or BIK) is the tax paid by an individual on the ‘benefit’ of receiving a company car for personal use. From April 2021-April 2022 there is only a 1% BIK rate applying to hybrid vehicles with emissions from 1 - 50g/km and a pure electric range of over 130 miles. So check before you commit to your company car exactly what that vehicle means for you as a taxable benefit.

Basically, if you choose an EV as your company car, you do so without having to pay much for the privilege! These monthly savings really stack up which can mean you might be able to afford something with a far higher list price and more bells, batteries and whistles just because it's electric.

What’s also good to hear is that the electric car benefit in kind rate will only increase to 2% in 2022/23, with the Chancellor announcing that rates would then be frozen for the following two financial years, 2023/24 and 2024/25. This makes an electric vehicle an incredibly attractive choice for would-be company car drivers who can be confident that these savings are here to stay, at least for the foreseeable future.

More information on business benefits can also be found in our Guide to Business Grants & incentives. 

Free Parking & Driving in Bus Lanes

There are a number of boroughs around the UK that allow electric vehicles free parking and some even allow you to drive in bus lanes. Check with your local authorityl to see if they have incentives in your area. A local incentive tool can be found here.

Have a business, manage a fleet or have a company car? Click our Business Guide to see the grants and incentives you could be eligible for.