Electric cars and vans

Electric cars and vans emit zero tailpipe carbon dioxide emissions. However, their impact on the environment is determined by how ‘green’ the electricity charging them is – in other words, whether the electricity has been generated by renewables or fossil fuels.

Electric vehicles that use electricity from the national grid emit considerably less carbon dioxide per mile than petrol or diesel models, and these emissions will continue to fall as the grid becomes cleaner.

For example, a battery electric car is estimated to have 66% fewer greenhouse gas emissions than a petrol car, and around 60% fewer than a diesel car, over its entire lifetime. Between now and 2050, projections show that electricity grid emissions will fall by around 90%, with total greenhouse gas emissions from electric vehicles falling in line with this reduction (Source: Road to Zero strategy).

Even considering the emissions associated with manufacturing, electric cars and vans are substantially less environmentally damaging than internal combustion engine (ICE) models and can help organisations meet corporate social responsibility (CSR) objectives.

Additionally, electric vehicles emit zero tailpipe air pollutants such as nitrogen dioxide, helping to improve both local and national air quality. They are also quieter than conventional vehicles, making for a more relaxing drive.

Lower running costs, including the cheaper cost of electricity as a fuel and generally lower servicing costs, can result in significant savings in operating an electric vehicle for organisations, particularly for those driving higher mileages.

Currently, there are a range of financial incentives available to help your organisation purchase and operate EVs. The Office for Zero Emission Vehicles (OZEV) offers grants for vehicles and chargepoints. 

Grants available across the UK include:

• Plug-in vehicle grant – discount dependent on the type of low emission vehicle.
• Workplace charging scheme – up to £350 per charging socket up to 40 sockets.
• EV chargepoint grant – provides funding of up to 75% towards the cost of installing electric vehicle smart chargepoints at domestic properties across the UK. The driver must own a flat or live in rented accommodation.

In addition, there are tax benefits for ultra low emission vehicles, as summarised below:

• Lower vehicle exercise duty (VED) rates until 2030, for new electric cars registered on or after 1 April 2025. Currently, it costs £10 for the first year, compared with £110-£1,000+ for hybrid, petrol or diesel vehicles. The more tailpipe emissions produced, the more it will cost. After that, all vehicles will be charged a standard rate of £195 per year.
• Lower company car tax. The class 1A national insurance contributions (NIC) that employers have to pay is significantly lower than with ICE company cars (as company car tax only applies to the employee).
• No fuel benefit charge and no benefit in kind liability for electricity provided by an employer to charge employees’ own electric vehicles (since April 2018).
• Businesses buying cars can write down 100% of the purchase price against their corporation tax liability if the vehicle emits no CO₂ (fully electric).
• Enhanced capital allowances when investing in ultra low emission vehicles or charging infrastructure. Zero-emission goods vehicles and equipment for electric vehicle charging points are eligible for the same 100% first year allowance as zero emission cars. Commercial vans, lorries and tractors are eligible for a 130% super-deduction capital allowance, or a 50% first-year allowance.
• Zero emission vans are eligible for the Plug-in Van Grant or the First Year Allowance, and drivers pay no van benefit charge.
• Advisory electricity rate – pure electric company car drivers can claim 9p/mile for business use. This is usually updated quarterly.
• VAT is charged at 5% on domestic electricity, but is 20% for commercial electricity.

Ultra low emission vehicles are also compliant with clean air zone standards and zero emission vehicles are entitled to a 100% discount until December 2025 on the London congestion charge (cleaner vehicle discount, see TfL for details). From 25 December 2025, the cleaner vehicle discount will be discontinued, and all vehicle owners, unless in receipt of another discount or exemption, will need to pay to enter the Congestion Charge zone during charging hours

Electric vehicle for SMEs

• Buying a used EV
• Can EV batteries be recycled?
• How well do EV batteries last?
• How green are EVs?
• Business Case for electric vehicles
• Towing with an EV
• Electric Vehicle van sales
• Electric vehicle servicing and maintenance
• Driving electric vehicles efficiently
• Public chargers and electric vehicles
• Electric vehicle home charging
• Electric vehicles for disabled drivers and passengers
• Fruit 4 London: a fully electric delivery fleet
• Electric vehicle and driver training
• Electric vehicle minicab driver
• FM Conway: ecargo bikes
• Shoreham Vehicle Auctions and electric vehicles
• Priority Express: Integrating EVs into the delivery fleet
• Positively Putney: ecargo bikes