UK Grants & Incentives for Small Business Car Ownership

When it comes to choosing the right car or van for your business, cost is always front of mind. The good news? There are several UK Government grants and incentives designed to make the switch to electric or low-emission vehicles more affordable for small business owners. Here’s a quick guide to what’s available right now:
 

Tax Benefits for Company Cars

Choosing an electric car doesn’t just reduce running costs — there are tax savings too:

• Benefit-in-Kind (BiK) rates for fully electric company cars remain low (just 2% until April 2025, then rising gradually)
• First-Year Allowance: businesses can claim 100% of the cost of a new electric car against taxable profits in the year of purchase
• Zero Road Tax (VED) for pure electric vehicles until April 2025

To find out how these incentives could work for your business, our Fleet & Business specialists at Lloyd Motor Group are here to help. Get in touch today to explore the best options for your company.
 

UK Government Grants:

Electric vehicle infrastructure grant for staff and fleets

The grant provides small and medium-sized businesses money off the cost of installing electric vehicle (EV) chargepoints and supporting infrastructure for their staff and fleet vehicles.

• up to £350 per chargepoint socket installed
• up to £500 per parking space enabled with supporting infrastructure

You can receive up to 5 grants across 5 different sites.

Perfect if you’re thinking ahead about fleet electrification or simply want convenient charging for staff and visitors. To find out more, visit: gov.uk
 

Workplace Charging Scheme (WCS)

The Workplace Charging Scheme provides support for organisations towards the cost of installing up to 40 electric vehicle chargepoint sockets at their sites.

The scheme covers up to 75% of the total costs of the purchase and installation of EV chargepoints (including VAT), capped at a maximum of:

• £350 per socket
• 40 sockets across all sites per applicant – for instance, if you want to install them at 40 sites, you will have 1 socket available per site

It is open to eligible: businesses, charities, public sector organisations, small accommodation businesses. To find out more, visit: gov.uk
 

Plug-in Van & Truck Grants

If your business relies on vans or light trucks, you could benefit from a government grant that reduces the upfront cost of switching to electric.

• Small vans – up to £2,500 off
• Large vans – up to £5,000 off
• Trucks – savings range from £16,000 to £25,000 depending on weight

These grants are automatically applied at the point of purchase, so there’s no extra paperwork for you. To find out more, visit: gov.uk
 

Plug-in Taxi Grant

This grant provides taxi drivers with money off the upfront cost of a new zero emission capable taxi, so that they can buy them more cheaply. You do not apply for the grant. The seller includes it as a discount in the purchase price.

The PiTG scheme offers a discount on the price of eligible taxis of up to a maximum of £4,000 or £3,000, depending on the vehicle’s range, emissions and design. One of the requirements is that the vehicle should be wheelchair accessible. Under the scheme, eligible taxis are allocated into 1 of 2 categories based on their carbon emissions and zero-emission range.

These grants are automatically applied at the point of purchase, so there’s no extra paperwork for you. To find out more, visit: gov.uk
 

Why This Matters for Small Businesses

These incentives don’t just save money — they make it easier to future-proof your business. Lower running costs, cleaner fleets, and access to more charging infrastructure all mean you can focus on growing your business while keeping overheads down.

At Lloyd Motor Group, we can help you navigate the latest offers alongside these government incentives, so you get the right car or van for your business needs — at the best possible value.