Electric vehicles (EVs) are becoming an increasingly popular choice for environmentally conscious consumers in the United Kingdom. In addition to their positive impact on the environment, there are also financial incentives available that make buying an EV a smart choice for your wallet. In this blog, we will explore the financial incentives for buying an EV in the UK.
- Government Grants
The UK government offers grants for electric vehicles that can help reduce the upfront cost of purchasing one. The Plug-in Car Grant is available for both cars and vans and offers up to £2,500 towards the purchase price. The grant is automatically applied to the purchase price by the dealership, so there is no need for consumers to apply for it separately.
- Reduced Road Tax
In the UK, EVs are eligible for a reduced road tax rate. This is because electric vehicles produce no carbon emissions, making them a more environmentally friendly option. This can save EV owners up to £135 per year on their road tax.
- Reduced Company Car Tax
If you use your EV as a company car, you can also benefit from reduced company car tax rates. EVs are subject to a lower Benefit in Kind (BIK) rate, which means that you pay less tax on the car. For example, in the 2021-22 tax year, the BIK rate for electric cars is 1%, compared to 20% for gasoline cars.
- Lower Fuel and Maintenance Costs
EVs are much cheaper to run than traditional gasoline cars, as electricity is a cheaper fuel source than petrol or diesel. Additionally, EVs require less maintenance than gasoline cars, as they have fewer moving parts and do not require oil changes. This can save you money on fuel and maintenance costs over the lifetime of the vehicle.
- Access to Clean Air Zones
Some cities in the UK have implemented clean air zones to reduce air pollution. Electric vehicles are typically exempt from these zones, meaning that EV owners can avoid any additional charges or fines for driving in these areas.
Overall, the financial incentives for buying an EV in the UK make them a smart choice for both the environment and your wallet. With government grants, reduced road tax and company car tax, lower fuel and maintenance costs, and access to clean air zones, there are plenty of reasons to consider purchasing an EV for your next vehicle.