UK government incentive for electric vehicles in 2024

Capital allowance for electric vehicles

If you have purchased an Electric Company Vehicle for your Fleet from April you can claim Capital Allowance. This 100% of the vehicle cost which can be deducted from your taxable profit. For more up-to-date information you can find this on the HMRC website.

Grants for electric vehicles

For Small and Medium-sized businesses (SMEs), your fleet and staff can apply for 75% off the installation of electric vehicle infrastructure. You can apply here.

BIK tax

With Electric Vehicles releasing lower CO2 emissions you can expect your Benefit In Kind (BIK) Tax to be lower. Our useful article on BIK Tax explains this further.

Low emission vehicles grant

For Vans, Trucks and Taxis you can purchase vehicles at a discounted rate which is subsidised by the Government. However, this is only on specific government-approved vehicles. 

For Small Vans, a dealer can apply a 35% discount to the price at a maximum of £2,500. For large Vans, this maximum discount is £5,000. Trucks can have a 20% discount applied up to £16,000 for small and £25,000 for large. Taxis also can have a 20% discount with a maximum discount of £7,500. You can view the exact vehicles included here.

We recommend going to one of our RAC-approved dealers to get the best offering for upgrading your fleet to electric. Our dealers have a 36-month warranty and meet a RAC-approved vehicle preparation standard.

Investing in an electric fleet

Initially investing in an Electric Vehicle Fleet can be costly. But with the above grants, you can offset a lot of the costs. However, once your fleet is up and running their ongoing costs are significantly lower compared to petrol and diesel vehicles. According to the British Vehicle Rental and Leasing Association, the cost of running an electric vehicle is somewhere between 2p to 4p per mile: dependent on how and when it is charged. 

RAC business electric vehicle breakdown cover

With RAC Business Breakdown Cover EV is included as a standard in our Breakdown Cover. We are already working with businesses like Royal Mail and British Gas to keep their electric vans on the road.

Our RAC mechanics can offer you a 10-mile boost if your battery should run out. Meaning that you won't need to be towed to the nearest charging point. 

Mileage allowance for electric vehicles

UK mileage expenses for electric vehicles a 45p per mile for the first 10,000 and 25p thereafter. This can save between 80%-90% of ongoing fuel costs. You can learn more about Electric Vehicle Mileage here.

Corporate social responsibility

Moving a fleet over to electric vehicles or beginning to offer choices like electric vehicles for company cars; demonstrates your commitment to environmental issues. 

Electric Transport over its lifetime will generate between 15% to 40% less CO2 emissions compared to a similar-sized petrol/diesel vehicle. To meet COP Goals needs to be put into action.

In conclusion, Electric Vehicles are the future for a successful business fleet. With an array of different grants available from the UK government, now is the time to invest. Don't forget when upgrading your fleet to ensure that you have a comprehensive Breakdown Cover to help you avoid any unnecessary downtime or costs for your business.