New electric cars purchased by businesses in the UK may be eligible for a plug-in car grant. The PiCG program was introduced in 2018 and while the strategy has changed somewhat over the years, the overall aim is to encourage business owners to invest in electric cars. Depending on the type of vehicle, the grant could cover as much as 35% of the electric car’s cost, with grants as much as £2,500 being given out if an electric vehicle’s listed price is below £35,000. Any additional equipment such as chargers, etc. will not be covered.
There are three categories of electric cars that are eligible for the PiCG grant, and these include:
• Category 1: Vehicles with an electric mode range of a minimum of 70 miles, and that create zero emissions (the manufacturer needs to quote the emissions as less than 50g/km.)
• Category 2: This category includes vehicles that have an electrical range of at least 10 miles and that create zero emissions (the manufacturer needs to quote the emissions as less than 50g/km.)
• Category 3: Vehicles that have an electrical range of 20 miles or more and that create zero emissions (the manufacturer needs to quote the emissions as less than 50g/km.)
Road tax for electric cars
Road tax is yet another area in which electric car owners will enjoy superior benefits. Road tax in the UK is based on CO2 emissions, and since fully electric cars do not produce any CO2 emissions, they are fully exempt from paying road tax. The less your CO2 emissions are, the less you will have to pay in road tax, thus potentially saving your company hundreds of pounds.
What are some of the other benefits of electric cars?
On top of the tax benefits, and the Plug-in Grant, there are many other advantages to owning an electric vehicle, whether it be for your personal use or for your business. Some advantages include:
• Zero emissions –sleep easier knowing that you are doing your bit for the environment by driving a car that produces zero emissions.
• Cheaper to run –you are definitely going to save on fuel prices as time progresses as fuel is expected to increase while energy sources such as electricity are set to become cheaper and more sustainable.
• Investing in the future –electric charging stations are being introduced in parking lots and business premises throughout the UK. The scene is set for charging to be more readily available, making owning an electric vehicle all the more convenient.
• Attract sustainably minded clientele –consumers are becoming more sustainable minded and are becoming more intentional about the suppliers and retailers they support. Owning an electric vehicle shows your commitment to the environment, which potential clients are interested in supporting.
• Comfort –no noise, no fuss. Electric cars are known for being exceptionally comfortable and a joy to drive.
• Quick acceleration –the batteries in electrical vehicles allow you almost instant acceleration.
• Variety –as electric cars are becoming more popular, there is a much wider variety for you to choose from. There are also more and more second hand electric cars coming onto the market for you to choose from.
If you’re looking for more information, Cangaf Ltd is the answer. Reach out now for a free quote, and we’ll take care of your accounting needs promptly!