Company car tax (Benefit-in-Kind)
- Electric cars are taxed at just 2%, compared to 25%-plus for petrol and diesel cars.
- However, this will rise slightly each year, reaching 5% by 2027. Still, those are big savings.
Road tax (Vehicle Excise Duty)
- While EVs are no longer exempt from VED, you can save a lot when you buy new – they cost just £10 for the first year.
Capital allowances
- Businesses can write off 100% of a new EV or charging equipment cost against profits in the first year, until March 2026.
Scotland
If you’re lucky enough to live north of the border, you can take advantage of some of the most generous EV support in the UK. Scotland-specific help includes:
An interest-free loan of up to £23,000 to buy a second-hand electric car or van, if your household earns less than £50,000 a year or you live in a rural and remote area of the country. A previous loan for new EVs is no longer available, however…
…an electric van loan for small businesses will be opening soon with up to £40,000 available for a new van, or up to £30,000 for a used one. Those interested can register on the Energy Savings Trust website.