EV grants and tax benefits for businesses
Electric vehicles (EVs) offer businesses significant financial and environmental advantages. From tax incentives to government grants for charging infrastructure, there are substantial opportunities to reduce costs and enhance operational efficiency.
Capital allowance
If your business uses EVs, you can benefit from a special tax allowance called a 100% first-year capital allowance. This allows you to deduct the entire cost of the EV from your profits before you pay tax. This can result in significant tax savings in the first year, making EVs a great choice for company vehicles. By using this tax allowance, you can lower your taxable income and reduce your overall tax bill. This immediate financial benefit encourages businesses to choose EVs, which can lead to big savings and help meet sustainability goals.
Company car tax
By opting for an EV for your company car you could save thousands of pounds annually on Benefit in Kind (BIK) tax. Up until April 2025, the BIK rate for full EVs was fixed at 2%, with the rate now gradually increasing by 1%each year until 2028. Even with this incremental rise, the tax benefits of driving an electric car will remain substantial, making EVs a financially attractive option for company car drivers looking to minimize their tax burden.
EV charging infrastructure at work
Small to medium sized businesses (no more than 249 employees), charities and public sector organisations can get grants to install electric vehicle charging infrastructure in their commercial car parks.
The grant covers up to 75% of the total costs of the purchase and installation of EV chargepoints, capped at a maximum of £15,000 per grant. Businesses can get up to:
- £350 per charging socket
- £500 per parking space enabled with supporting infrastructure
The installed infrastructure must support a minimum of five parking spaces with at least one working chargepoint.
The installer will claim the grant on behalf of the business.
Find out more about the EV infrastructure grant for staff and fleets
Workplace Charging Scheme (WCS)
The Workplace Charging Scheme (WCS) offers a voucher-based funding scheme, open to businesses, charities and public sector organisations that meet the applicant and site eligibility criteria.
The grant covers up to 75% of the total costs of the purchase and installation of EV charge points (inclusive of VAT), capped at a maximum of:
- £350 per charging socket
- 40 sockets across all sites per applicant – for instance, if you would like to install them in 40 sites, you will have 1 socket available per site
Please refer to the WCS minimum technical specification and WCS approved charge point list for more information.
Find out more about OZEV’s WCS, including the application process
