FREE Shipping in USA

 | New Arrival - Space Lamps
0

Your Cart is Empty

British EV incentives for Business Could Skyrocket Tesla’s Demand

by Eva Fox January 10, 2020

British EV incentives for Business Could Skyrocket Tesla’s Demand

Electric cars help you reduce your environmental footprint, lower running costs and save taxes. The Government of UK is committed to helping increase the amount of electric vehicles on the road in order to meet ambitious climate change targets and ensure cleaner air quality in major cities. So, you can get a discount on the price of brand new low-emission vehicles through a grant the government gives to vehicle manufacturers. The maximum grant available for cars is £3,500.

The list of 30 cars that have the opportunity to receive a grant in the UK includes three Tesla models: Model S, Model X and Model 3. According to Low-emission vehicles eligible for a plug-in grant, the grant will pay for 35% of the purchase price for these vehicles, up to a maximum of £3,500.

All Tesla cars have zero emissions and may be eligible for financial incentives that encourage clean energy use in the UK.

Benefits for All Tesla Drivers:

• £3,500 plug-in grant
• Exempt from London Congestion Charge
• Access to clean air zones, including the London Ultra Low Emission Zone
• Up to £35,000 interest-free loan (Scotland only)

Benefits of Tesla for Business:

• 100% First Year Allowance
• No car fuel benefit charge
• Reduced National Insurance contributions
• 0% Benefit in Kind (BIK) starting April 6th 2020
• Eligible for salary sacrifice schemes

Tesla is a great choice for business owners and employees.

The plug-in grant is a purchase subsidy of up to £3,500 which is deducted from the purchase price of new Tesla vehicles. To benefit from the EV incentive scheme, Tesla need to share your name and contact details and the VIN of your car with the Department for Transport.

First Year Allowance is claimable for up to 100% of the cost of qualifying low emission and electric cars. By choosing a Tesla car, your business can claim a 100% year one deduction for the cost of the vehicle.

The First Year Allowance is applicable to new vehicles and cars considered new despite previously being used, such as vehicles registered as a sales or service demonstrator by the manufacturer.

In the 2016 UK Budget, the Government announced that 100% FYA for businesses purchasing low emission cars will be extended until April 2021. All Tesla cars have a benefit-in-kind (BIK) tax of 16 percent, which is the lowest available rate in the UK. In the 2020/21 tax year, both new and existing Tesla cars will be eligible for a 0 percent BIK rate. The BIK rate will rise to 1 percent in 2021/22 and to 2 percent in 2022/23.

The average petrol or diesel vehicle has a BIK rate of 20 to 37 percent.

Source: Goultralow

As electricity is not classed as a road fuel, Tesla cars have no fuel benefit charge. That means employees are exempt from paying benefit-in-kind on electricity provided by their employer to charge an electric company car.

As electricity is not classed as a road fuel, the car fuel benefit charge does not apply to electric charging. If an employee uses a company car, no benefit-in-kind occurs when charging their vehicle at the workplace. 

Salary Sacrifice enables employees to sacrifice some of their gross salary in order to receive the benefit of driving a fully electric company car. As the sacrifice is executed before tax and National Insurance contributions are applied, employees effectively save costs in the acquisition of their new car in a similar way that other savings such as childcare, gym membership or cycle-to-work schemes operate.

From a company’s perspective, this scheme provides an opportunity for organisations to offer employees a new car at a lower cost than they could achieve in the retail market in a tax efficient way. The company may also benefit from reduced National Insurance contribution payments from the scheme.

Salary Sacrifice is either offered by the employer or the leasing provider.

Salary sacrifice is a financial solution offered by an employer to employees through a leasing company. With a salary sacrifice scheme, you can lease a car with no initial, upfront costs on monthly payments and no further obligations at the end of the leasing term. Many leasing companies offer turnkey solutions that can be implemented within 4-6 weeks, including comprehensive maintenance and business insurance plans.

With 0% Benefit-in-kind on zero-emissions company cars from April 6th 2020, there has never been a better time to drive a Tesla for business.

A salary sacrifice scheme allows employees drive a fully electric company car, by forgoing a portion of their gross salary. The amount will be deducted before tax and National Insurance contributions are applied, akin to childcare, gym membership or cycle-to-work schemes.

A salary sacrifice scheme allows employers to offer employees a new car at a lower cost with a tax-efficient payment method. Additionally, the company may also benefit from reduced National Insurance contribution payments. Salary sacrifice schemes are HMRC and VAT compliant.

These are great incentives that can significantly increase demand for Tesla in the UK.

Follow me on Twitter Eva Fox 🦊




Also in Tesmanian Blog

Tesla Model Y New Adjusted Prices Become More Attractive
Tesla Model Y New Adjusted Prices Become More Attractive

by Eva Fox July 11, 2020 0 Comments

Tesla's mission is to accelerate the transition of the world to sustainable energy. An important point of this is the massive use of electric vehicles. First, Tesla created more expensive cars so that the profits from them would finance the development and production of cheaper and more affordable models. Thanks to Model 3, the company's electric vehicles have become very popular and desirable, and Model Y should strengthen Tesla's position in the global automotive market.
Read More
SpaceX completes Falcon 9 static-fire test ahead of launching a South Korean military satellite
SpaceX completes Falcon 9 static-fire test ahead of launching a South Korean military satellite

by Evelyn Arevalo July 11, 2020 0 Comments

Launch scheduled for July 14
Read More
Tesla filed a patent 'Packaged device having embedded array of components'
Tesla filed a patent 'Packaged device having embedded array of components'

by Eva Fox July 11, 2020 0 Comments

Tesla's patent 'Packaged device having embedded array of components' relates generally to electronics, and more specifically to the structure of packaged integrated circuits. 
Read More

Previous  / Next