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Lombard

Zero emissions vehicles

We are here to support your transition to zero emissions

The government have pledged a number of initiatives to increase the number of electric vehicles (EVs) in use and made it easier for businesses to go green.

  • First Year Allowances for new EVs – businesses can reclaim 100% First Year Allowances on the purchase of a zero emissions vehicle up to April 2025, which could help your business fund additional costs of an EV over an ICE car with accelerated allowances.
  • Vehicle Excise Duty changes – Expensive Car Supplement scrapped for EVs costing more than £40,000 up to 2025, potentially helping Total Cost of Ownership calculations when considering the viability of new EVs over existing ICE vehicles.
  • Benefit In Kind tax - reduced from 16% to 0% in the 20/21 tax year, 1% in 2021/22 and 2% in 2022/23 for zero emissions cars, meaning significant savings and further incentives for your employees when compared with more traditionally fuelled alternatives.
  • £1.9bn investment into Green Transport solutions – this includes a review of the EV Charging Infrastructure to ensure spending is appropriately targeted.
  • Plug in vehicle grant - commitment to provide £582m to extend the support for the purchase of new qualifying vehicles up to 2022/23.
  • For capital expenditure incurred from 1 April 2021 until the end of March 2023, companies can claim 130% capital allowances on qualifying plant and machinery investments, including EV charging points.

Tax reliefs referred to are those applying under current legislation which may change. The availability and value of any tax reliefs will depend on your individual circumstances.

How could this help you?

Consumers are increasingly choosing businesses which operate sustainably. With the changing vehicle landscape, electric vehicles could help your business, whether you are looking at company cars or other business vehicles.

You could benefit from:

  • Reduced tax - offset 100% of the cost of electric cars against taxable profits 
  • Plug-In Vehicle Grants - up to £2,500 for eligible cars, up to £3,000 for small vans and £6,000 for eligible light commercial vehicles (LCVs)
  • Reduced fuel and maintenance costs
  • Access to clean air zones, including the ULEZ in London
  • Exempt from London congestion charge
  • Workplace charging installation grants
  • Reduced National Insurance contributions for zero emissions company cars due to lower benefit in kind rates
  • Employees are not subject to the Car Fuel Benefit Charge if the company car is an EV

 

How Lombard could help

We offer a range of flexible finance options to assist you in purchasing your vehicles or charging infrastructure.

Hire Purchase

Spread the cost of your vehicle purchase over a longer period with fixed regular payments

We offer flexibility on the cost of your deposit, regular monthly payments and the final lump sum. 

Contract Hire

Flexible finance solutions for small businesses up to large corporate fleets

Avoid the risks associated with vehicle ownership such as maintenance costs and depreciation.

Explore other finance options

We offer a number of other finance options which can be tailored to your needs.

Get in touch today