GOVERNMENT GRANTS.
MINI CORPORATE
GOVERNMENT GRANTS & INCENTIVES.
Building a fleet of electric vehicles is the way forward for UK-based companies, it is a responsible solution that comes with tax benefits; switching to electric just makes sense.
Whether it's tax savings across Benefit-in-Kind (BIK) or reductions in motor and road tax, ULEZ or congestion charge savings or charging schemes, discover the benefits of switching to an electrified car.
THE GOVERNMENT PLUG-IN CAR GRANT.
- The Government Plug-in Car Grant of up to £2,500 is available only to wheelchair accessible vehicles priced up to £35,000* with zero CO2 tailpipe emissions and a zero-emission range of at least 70 miles. Grants are also available for motorcycles, mopeds, taxis vans, large vans and trucks.
- The grants are administered by the Office for Zero Emission Vehicles (OZEV), and the process of application is managed by the vehicle manufacturer and its retailer network rather than the purchaser.
*The definition of recommended retail price includes VAT (including VAT reclaimable by a business) vehicle manufacturer or dealer’s mandatory extras including delivery charges or administration fees, the battery cost (including where the battery is leased), any non-standard option fitted by the manufacturer or dealer affecting the capacity of the battery, drivetrain configuration or maximum net power, and excludes any non-standard option fitted by the manufacturer or dealer which does not affect the capacity of the battery, drivetrain configuration or maximum net power, modifications such as ‘police packs’, ambulance/fire engine modifications, modifications for disabled users, including WAV conversions, warranty/insurance and service packages etc, first registration fee and cost of first year VED and any discounts (including rebates). UK model specifications may vary.
THE ELECTRIC VEHICLE CHARGE POINT GRANT.
The Electric Vehicle charge point grant replaces the Electric Vehicle Home charge Scheme (EVHS) and is open to homeowners (including those with mortgages) living in flats and rental accommodation from 1 April 2022. Those living in single-unit properties such as bungalows and detached, semi-detached or terraced housing, are no longer eligible for the grant. The Grant provides a 75% contribution to one OZEV-approved home charge unit per eligible electric or plug-in vehicle, capped at £350 including VAT. The unit must be installed by an OZEV approved charge point installer who must confirm ownership of the property. Customers are no longer be able to claim for two charge points if they own a second electric vehicle.
BENEFIT-IN-KIND (BIK)
Benefit-in-kind (BIK) tax is based on a car’s P11D price and CO2 emissions. Since 1 April 2022 all company cars have been taxed according to WLTP CO2 emissions, with the BIK percentage rates shown in the table opposite applying until 31 March 2025. Drivers of cars with zero emissions of CO2 when driving, such as EVs, are liable for BIK tax based on 2% of taxable value. From April 2025, the percentage paid in each band increases by one point, and by a further point from April in subsequent years to 2028. For cars with CO2 emissions of 1-50g/km, the number of miles they can drive with zero emissions of CO2 has a significant bearing on tax liabilities. All MINI fully-electric cars have zero-emission driving, so you'll benefit from the 2% taxable value in 2024.
PRACTICAL CONSIDERATIONS FOR BUSINESS
Fuel duty is paid on each litre of road fuel purchased (or per kilogram in the case of gases). Therefore the fuel efficiency of a vehicle, the way a vehicle is driven and the distance driven will determine the total amount of duty paid. As electricity is not subject to fuel duty, EVs are duty-exempt.
BENEFIT-IN-KIND (BIK)
Benefit-in-kind (BIK) tax is based on a car’s P11D price and CO2 emissions. Since 1 April 2022 all company cars have been taxed according to WLTP CO2 emissions, with the BIK percentage rates shown in the table opposite applying until 31 March 2025. Drivers of cars with zero emissions of CO2 when driving, such as EVs, are liable for BIK tax based on 2% of taxable value. From April 2025, the percentage paid in each band increases by one point, and by a further point from April in subsequent years to 2028. For cars with CO2 emissions of 1-50g/km, the number of miles they can drive with zero emissions of CO2 has a significant bearing on tax liabilities.
PRACTICAL CONSIDERATIONS FOR BUSINESS
Fuel duty is paid on each litre of road fuel purchased (or per kilogram in the case of gases). Therefore the fuel efficiency of a vehicle, the way a vehicle is driven and the distance driven will determine the total amount of duty paid. As electricity is not subject to fuel duty, EVs are duty-exempt.
© MINI UK 2024
© MINI UK 2024