Unlocking Tax and Benefits: Workplace EV Chargers in the UK

by | Aug 11, 2023 | Editorial

In recent years, the UK has taken significant strides in the promoting electric vehicles (EVs) as a sustainable mode of transportation. As part of this initiative, the government has introduced various different tax incentives and benefits for companies that take the lead and install EV chargers at their workplace. In this blog post, we will explore the different tax advantages and other benefits that companies in the UK can receive by embracing workplace EV charging.

 

Enhanced Capital Allowances (ECA):

One of the key tax benefits of installing EV chargers at the workplace is the availability of Enhanced Capital Allowances. Through this scheme, businesses can claim a 100% first-year capital allowance on the cost of qualifying EV charging equipment as well as electric vehicles themselves as long as they’re unused and zero-emission. This means that companies can deduct the full cost of the EV chargers and the vehicles (new) from their taxable profits in the year of purchase, providing a significant reduction in tax liability.

 

OZEV Grants:

The UK government has also created a range of different grants that can be utilized for workplaces installing EV charging. These grants have been designed to incentivize businesses to install EV charging infrastructure sooner. Under this scheme, eligible businesses can claim up to £350 per charging socket, with a maximum of 40 sockets per business. This financial support can help companies offset a substantial portion of the installation costs, making workplace EV charging more affordable and accessible. If you’d like to see the specifics around the available sites click here.

 

Reduced Benefit-in-Kind (BIK) Tax:

Company car drivers and employees who use employer-provided EV chargers for personal use can benefit from reduced Benefit-in-Kind (BIK) tax rates. In the UK, the BIK tax is calculated based on the value of the vehicle and its carbon dioxide (CO2) emissions. As electric vehicles produce zero emissions, they fall into the lowest BIK tax band, resulting in significantly reduced tax liabilities for employees. If you are providing your staff with vehicles, It may be worth offering them EVs for this lower BIK tax allowing them to receive more benefits, creating a better workplace overall.

 

Employee Attraction and Retention:

Providing workplace EV chargers can be a powerful tool for attracting and retaining talented employees. With the increasing popularity of the eco lifestyle and electric vehicles, employees who own EVs or plan to purchase one in the future will highly value the convenience of charging their vehicles during working hours. Offering this amenity demonstrates a company’s commitment to sustainability and their employees, enhancing your company’s overall appeal to possible employees.

 

Green Credentials and Corporate Social Responsibility (CSR):

Installing workplace EV chargers helps align with a company’s green credentials and corporate social responsibility objectives. By embracing EV charging infrastructure, companies can show that they’re actively contributing to reducing carbon emissions as well as promoting a cleaner environment. Such initiatives can enhance a company’s reputation, attract more environmentally conscious customers, and strengthen relationships with stakeholders who prioritize sustainability.

 

Public Relations and Marketing Opportunities:

When looking at installing Electric vehicle chargers at a business public appeal does not usually come to mind, but companies that install workplace EV chargers often benefit from positive publicity and marketing opportunities. The media and general public increasingly applaud businesses that take steps towards sustainability. By highlighting their commitment to electric vehicles and renewable energy, companies can leverage their EV charging infrastructure as a marketing tool, gaining a competitive edge and attracting customers who value eco-friendly practices.

 

Conclusion:

Installing EV chargers in the workplace in the UK comes with significant tax benefits and other advantages for companies. Enhanced Capital Allowances, the grants available, and reduced BIK tax rates incentivize businesses to embrace electric vehicles and contribute to the nation’s sustainability goals. Furthermore, workplace EV charging enhances employee attraction and retention, showcases a company’s commitment to CSR, and opens up public relations and marketing opportunities. By investing in EV charging infrastructure, companies can reap the rewards of a greener future while enjoying the numerous financial and non-financial benefits it offers. If youd like to start you EV journey now click here.

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