Are There Incentives for Installing Business EV Charging Stations?
Businesses are increasingly recognising the importance of transitioning to electric vehicles (EVs) as part of an effort to reduce emissions and build a sustainable future. However, for many companies, the cost of installing EV charging stations can be daunting. Fortunately, there are incentives that can help businesses offset some or all of the expenses for EV charging station installation.
The UK has a number of incentives available for businesses and individuals looking to install electric vehicle (EV) charging infrastructure. These grants are designed to encourage the uptake of EVs across the country, helping to reduce air pollution and other environmental impacts associated with traditional fossil fuel-powered vehicles.
Funding is available from both national and local government sources, with different requirements and eligibility criteria in place depending on where you live. For example, The Office for Low Emission Vehicles (OLEV), part of the Department for Transport, provides funding through its ‘OLEV Grant’, which enables owners of commercial properties to claim £350 per socket and also be eligible to receive funding for up to 40 sockets across all sites in the application.
EV Chargepoint Grant
Landlords and property owners can also benefit from the EV Chargepoint Grant, which provides up to £350 per charging socket installed at residential properties – 200 grants are available each year – or commercial premises –with 100 grants available annually.
Additionally, EV Infrastructure Grants worth up to £30,000 are on offer for necessary infrastructure such as wiring and posts – 30 grants are made available every year.
Renters and leaseholders have the opportunity to get a grant of up to £350 each for the purchase and installation of a charge point.
These incentives make it easier for businesses, landlords, property owners and even renters or leaseholders to install EV charging points. This is an important step towards transitioning to a zero-emission transport system that will help reduce carbon emissions and combat climate change.
The UK government has introduced a range of tax incentives to promote the adoption of electric vehicles (EVs). These incentives include reduced Vehicle Excise Duty for EVs, grants available for the purchase of electric cars and vans, and lower rates of Value Added Tax (VAT) for EV charging.
Potential Tax Savings on EV Charging Points
The installation of electric charging points at the workplace or home of an employee could, potentially, be eligible for a 130% super deduction rate of capital allowances up until 31 March 2023. After this date, the expenditure may have to be treated like any other capital expenditure, which would be subject to the Annual Investment Allowance (AIA) limit of £1 million. However, it is possible that the 100% first year allowance could be extended until 2025 and this would help protect the AIA limit from being reduced back down to £200,000 on 1 April 2023.
Businesses should also consider the impact that providing charging points could have on their employees’ personal tax liability – for example, any additional benefits-in-kind (BIK) arising from this benefit might be taxable. It is recommended to consult a tax adviser to ensure that all relevant tax implications are taken into account. You can learn more about the tax implications here.
Vehicle Excise Duty (VED)
All cars with zero emissions which were first registered on or after 1 April 2017 will be subject to the lowest rate of Vehicle Excise Duty (VED) currently applicable for vehicles that emit 1-50g/km of CO2. Following the first year, these vehicles will move onto the standard annual VED rate. However, this will change for new zero emission cars registered on or after 1 April 2025, which will become liable to pay the expensive car supplement, depending on the list price of the vehicle (currently those with a list price of £40,000 or higher).
Note: The exemption from this supplement is currently due to end in 2025.
Should You Invest In A Commercial EV Chargepoint?
Overall, there are a number of incentives available for businesses that choose to install EV charging stations in the UK. Through grants, tax incentives and discounted electricity tariffs, organisations can significantly reduce their expenses related to transitioning to low-carbon transport solutions. By taking advantage of these incentives, businesses can help make EVs more accessible and contribute to the UK’s effort to build a sustainable future.
The UK government has been supportive in its efforts to incentivise EV uptake across both the general public and private businesses. With the introduction of various grants, lowered taxes, and other incentives, it is becoming increasingly easier for individuals and companies to make the switch to electric vehicles.
Here at Zicam Systems Group, we are dedicated to supporting all of our customers to stay safe when it comes to their businesses. If you are looking for specialist EV charging stations do not hesitate to contact us via our contact form or by phone at 08000854711.