We are all trying to be a bit more eco-conscious. An electric car might seem like an easy swap, but the price can put you off.
The Government scrapped the Plug-in Car Grant (PiCG) back in June, but due to delays in the supply chain, the grant has been reinstated.
Who is eligible for the grant?
If you are looking to buy an electric car, this £1,500 grant could ease the strain on your pocket.
The grant will only apply to cars that cost £32,000 or less, which means it is only available for cheaper models.
This grant will be automatically applied when you buy an eligible electric vehicle (EV), so there is no need to apply.
If you’ve already ordered you may be thinking that you’ve missed out. But the Government has announced that the grant will be applied to any eligible purchases from when the scheme stopped in June.
This extension will last for 18 months, with grants available until 31 March 2023.
Why has the grant been reintroduced?
The car industry has been hit with supply chain issues, stemming from the global semiconductor shortage and the war in Ukraine.
As a result, the industry has taken a hit, so the reintroduction of this grant is set to stimulate demand.
In its previous run, the PiCG supported the purchase of approximately 500,000 electric vehicles. Between 2011 and June 2022, this support amounted to £1.4 billion.
Are there other benefits of electric cars?
Electric vehicles are generally cheaper to run than their petrol and diesel counterparts. They also benefit from a lower benefit in kind tax rate.
As well as being exempt from vehicle tax, you could also reclaim the VAT paid on the car if it is used solely for business purposes.
If you are self-employed, you can also claim First Year Capital Allowances for the vehicle. This means you can deduct the cost of the car from your profits in the accounting period you purchased it.
For advice on grants and funding available to you, contact our team today.