If you’re considering making the switch to an electric vehicle then it’s worth checking out the various savings that can be made.
Government Grants
While EVs may be more expensive to buy or lease initially, the reduced running costs and exemptions mean whole-life costs can work out much lower. The government are even offering grants of up to £2,500 off the purchase price of new EVs under the price of £35,000. The number of EVs under £35,000 has increase by 50% since 2019 and more than half of all EVs on the market are eligible for the grant.
If you’re leasing a vehicle, the leasing company will reflect the value of the grant in the rental figure.
Find a full list of vehicle eligible for the grant on the Gov website by following the link below.
Benefit in Kind Tax Savings
Salary sacrifice schemes allow employees to pay for the lease of an EV our of their salary, before paying tax or National Insurance. Meaning you could save up to 50% on the cost of a car by purchasing through salary sacrifice. So it’s definitely worth checking if this option is available for you.
Savings are made even greater at the moment due to changes in the Benefit in Kind (BiK) tax policies, meaning you’ll pay just 1% BiK tax in 2021/22, and just 2% from 22/23 until 2025.
Previously the rate for a zero-emissions vehicle was 16%, with higher emissions vehicles having a much higher rate than this!
If you’re eligible for a company car benefit, you’ll save a great deal of money opting for an electric vehicle over other vehicles because of these changes too!
Find out more about BiK tax and how you might be able to benefit on the Electrifying website.
Energy Tariffs
Charging at home is an important part of ownership for most electric vehicle drivers. While home charging is cheaper than petrol, diesel or public charging, it does mean that your electricity bills will increase. You do, however, have some control over how much they increase, and can shop around for the best energy tariffs exclusively for electric vehicle users.
Many energy providers offer smart time-of-use tariffs so your vehicle will automatically charge when it’s cheapest (typically overnight). Many also offer 100% renewable energy on these tariffs, so you know you really are doing the best you can for the environment.
Find out more and explore tariffs on the Zap Map website by following the link below.