Understanding the Tax Advantages of Electric Vans

Electric vans can offer substantial tax advantages for both businesses and individuals. Understanding these is important for making informed decisions and maximising your financial benefits.

In this guide, we'll explore the tax advantages associated with electric vans.

How the tax rules work in relation to electric vans for businesses

There are various tax rules to consider for businesses utilising electric vans.

Van leasing is tax-deductible, providing financial benefits to businesses. In essence, businesses can claim back any tax expenses linked to the lease, provided it meets set criteria. This can result in substantial savings for your business. To determine the exact tax advantages available to your business, please consult your tax advisor.

If you require a van for private use, in addition to business use, investing in an electric van may be a tax-efficient option. Currently, there are no tax implications if you use a company-owned electric van outside of business hours.

Another benefit of electric vans is that they are exempt from road tax until at least 2025, providing further cost savings for businesses.

Benefit-in-kind on company electric vans

Benefit-in-kind (BIK) tax is a tax paid on the benefit an employee receives from their employer in the form of a company vehicle. The BIK is calculated based on the vehicle’s list price, its CO2 emissions, and its fuel type. For electric vans, the charge is free. This results in substantial savings for both the employer and the employee.

Benefit-in-kind on fuel for company electric vans

If your employer provides you with an electric company van, currently, no BIK is levied on the electricity used for charging an electric van. If you need to charge the van at home, you should be eligible to reclaim a portion of the electricity bill as a business expense.

Please note, the information in this article is for guidance purposes only. Businesses should consult with tax professionals for the most detailed and up-to-date advice.

Need a hand finding the perfect electric van for your business? Our expert team is available to offer tailored recommendations based on your specific requirements.

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