Grab your electric van grant while you can
One benefit that’s managed to avoid the chop relates to electric vehicles. What’s available and how might it help if you’re in the market for a new commercial vehicle?
The government has announced that £120m is available to drivers, cabbies and businesses who want to make the switch to electric vehicles. The money comes through the “plug-in van grant”, which has been extended for another twelve months to April 2026. Under the 2024/2025 electric van grant rules, the maximum saving for 3.5-tonne electric vans is £5,000, while the maximum reduction for smaller vans up to 2.5-tonnes is £2,500. This will now be extended to 2025/26. Heavier electric vans such as those with 4.25-tonne ratings and N categorisation continue to qualify for the small truck grant, which offers an incentive of up to £16,000, capped at 20% of the purchase price.
To qualify for the plug-in grant the electrified van must now meet the following standards: 60 miles or more of zero emissions driving range; less than 50g/km CO2 emissions.The plug-in taxi grant, due to run out in April, has not been extended. However, grants of up to £4,000 for the purchase of zero emission cabs are being made available. This is less than the £6,000 available until March 31, 2025. A grant of £500 is available for those purchasing new electric motorbikes.
Related Articles
-
Festive tax breaks for remote workers
You’re familiar with the tax break for Christmas parties but you now have a few remote workers, and the company will need to reimburse their travel and accommodation costs if they attend an event. Which costs count towards the tax-free limit and how can you manage any overspend?
-
Forming a partnership to split your income
You’ve been doing some freelance work and what started out as a modest side hustle is now taking off. You’ll need to pay tax on the profits but is it possible to reduce it by splitting the income with your spouse?
-
Paying VAT when cash is tight
Your business has suffered a major cash-flow problem caused by an unexpected bad debt. Your VAT return is due for payment and you do not have enough funds to pay on time. What can you do?