Zero emissions vehicles

From April 2020, the government have pledged a number of initiatives to increase the number of electric vehicles (EVs) in use and made it easier for businesses to go green.

• Extending First Year Allowances for new EVs – businesses could reclaim 100% First Year Allowances on the purchase of a zero emissions vehicle up to April 2025, which could help your business fund additional costs of an EV over an ICE car with accelerated allowances.
• Vehicle Excise Duty changes – Expensive Car Supplement scrapped for EVs costing more than £40,000 up to 2025, potentially helping Total Cost of Ownership calculations when considering the viability of new EVs over existing ICE vehicles.
• Company car tax – previously announced changes to the CO2 percentages by 2022/23 have been put back to their published rates in existing legislation. These will be sustained throughout tax years 2023/24 and 2024/25, providing more certainty.
• 0% Benefit In Kind tax - reducing from 16% to 0% for zero emissions cars, meaning significant savings and further incentives for your employees when compared with more traditionally fuelled alternatives.
• £1bn investment into Green Transport solutions – this includes a review of the EV Charging Infrastructure to ensure spending is appropriately targeted.
• Plug in car grant - commitment to provide £403m to extend the support for the purchase of new qualifying vehicles up to 2022/23.