2023 was a monumental year for electric vehicles. According to figures published by the Society of Motor Manufacturers and Traders (SMMT), demand for electric vans saw a remarkable 21% increase, reaching 20,253 units. These statistics solidify the United Kingdom’s position as the third-largest market for electric vans in Europe, measured by volume.

What fueled this surge in popularity? Several advantages come with a greener vehicle portfolio. Read on to learn about these benefits and discover the available grants to steer your business in a more sustainable and profitable direction. 

Making The Switch to Electric Vans 

There are a variety of electric vans on the market, from panel vans to electric tippers, providing an excellent opportunity to diversify your fleet. If you’re sceptical about switching to electric vehicles, delve into the information below. 

Benefits of Choosing an Electric Van

Explore the many advantages of buying or financing an electric vehicle.

Cheaper Cost per Mile: 

While purchasing an electric van upfront may be more expensive than traditional fossil fuel vehicles, the running costs are significantly lower. The widespread availability of electricity means it’s one of the cheapest ways to refuel. 

Over time, these costs will offset your initial purchase and significantly reduce ongoing fuel costs for your business.

Less Maintenance:

Electric vans generally have fewer moving parts than their combustion engine counterparts. This factor results in lower maintenance costs.

Travel Benefits:

Electric vehicles are often exempt from congestion charges. This trait is beneficial if your business operates in Ultra Low Emission Zone (ULEZ) zones. Already enforced in London, the ULEZ scheme is expected to expand to Birmingham, Manchester, Bath, Oxford, and Bristol. 

Getting ahead of these changes with an electric van will future-proof your business, reduce charges, and give you priceless peace of mind. 

Enhanced Efficiency:

Electric vans are known for their quiet and smooth operation. Not only is this a pleasure to drive, but it’s excellent for businesses operating in housing areas who want to keep noise pollution to a minimum. The vehicles also have good acceleration and responsiveness, which is valuable for quick and efficient transportation.

Commitment to Sustainability:

Electric vehicles offer a zero-emissions alternative, which benefits local air pollution, especially in built-up, urban areas that are often already suffering heightened exposure to poor air quality. 

Generally, customers and stakeholders view eco-friendly practices favourably, which may improve your reputation and brand image. Aside from an extra boost of good PR, it also future-proofs your business, showcasing Corporate Social Responsibility (CSR) and making it viable for the long term.

Tax Benefits of Transitioning to Electric Vans

Tap into the tax-related advantages that come with owning electric vehicles.

Road tax exemption: 

As it stands, fully electric vans are exempt from road tax. By 2025, the Government will introduce a road tax contribution for electric vehicles. However, this payment will be low, still incentivising the switch to electric.

Capital allowances:

A 100% first-year allowance means businesses can claim 100% of the cost of new and unused electric vans against taxable profits in the first year of purchase, resulting in significant savings.

Tax-free mileage: 

Companies can reimburse employees for business use of their electric cars or vans at a tax-free rate of 45 pence per mile for the first 10,000 miles driven in a tax year. Then, 25 pence per mile for business miles beyond 10,000 in the same tax year.

Benefit-in-kind (BIK):

Benefit in Kind (BIK) tax rules for electric vehicles are favourable compared to petrol or diesel vehicles. BIK is currently capped at 0% on electric vans until 2025, meaning employers and employees will make notable savings in Tax and National Insurance. 

Government Grants and Schemes to Know About 

The Government gives incentives to make electric vehicles cheaper and easier to obtain. Read below to learn about these schemes.

Plug-in Van Grant (PIVG): 

The Plug-In Van grant will pay 35% off the price of an electric van, up to a maximum of £5,000. Vans will qualify for the grant if they have emissions of 50g/km or less and a range of at least 60 miles for fully electric vehicles.

Workplace Charging Scheme (WCS):

With the Government’s Workplace Charging Scheme (WCS), organisations can receive vouchers towards the upfront cost of buying and installing charging points at places of work. 

The grant covers up to 75% of the total costs of the purchase and installation of charge points (inclusive of VAT), capped at a maximum of:

• £350 per socket
• 40 sockets across all sites per applicant

Electric Vehicle (EV) Infrastructure Grant:

You can apply for the EV infrastructure grant if you’re a small to medium-sized business with 249 employees or fewer. This grant knocks money off building and installation work, for now and in the future. You can receive up to five grants across five different sites.

The grant covers 75% of the cost of the work, up to a maximum of £15,000. You can get: 

• Up to £350 per charge point socket installed
• Up to £500 per parking space enabled with supporting infrastructure

Anticipate the Best Electric Vans from VanDemand

Are you looking to build a greener commercial fleet? Our electric vans are coming to our website soon. In the meantime, browse our diverse range of commercial vehicles, each tailored to improve efficiency, productivity and growth. 

If you have any questions about our service or would like a vehicle quote, please contact the VanDemand team. Call us on 0845 646 5646 or email info@vandemand.com for more information.