UK Government EV Initiatives Every Small Business Should Know

If you’re a tradesman in the UK — whether you’re an electrician, plumber, builder, landscaper, courier, or decorator — your van is more than just transport. It’s your workshop on wheels, your storage unit, and your way of getting from job to job on time.

But there’s a big change happening in the van market:

• Diesel is getting more expensive to run.

• More cities are introducing charges for high-emission vehicles.

• Customers, especially corporate ones, are favouring businesses that operate greener vehicles.

And crucially — the UK government is offering real, financial incentives right now that can take thousands off the cost of switching to an electric van and keep your ongoing running costs low.

The catch? These schemes won’t be around forever.

The Plug-In Van Grant – Up to £5,000 Off Your Van

The Plug-In Van Grant (PIVG) is the headline offer and the one most tradesmen should be looking at first.

What it is:
The grant covers 35% of the purchase price of a qualifying electric van, up to a maximum of £5,000 for large vans (3.5 tonnes) and £2,500 for smaller vans.

How it works:
You don’t have to fill in forms or wait months for reimbursement — the grant is applied directly at the point of purchase by the dealer. That means the price you see already includes the saving.

Why it’s perfect for tradesmen:

• It’s instant — no cash flow gap

• It reduces your upfront cost, freeing up capital for racking, branding, or tools

• You can claim it on multiple vans if you run a small fleet

Example:
If you buy a new electric van for £45,000, you could get £5,000 off straight away, paying £40,000 instead. Combine that with fuel and maintenance savings over the next 5 years, and you could be £15,000–£20,000 better off.

The Workplace Charging Scheme – Cut the Cost of Installing Chargers

Charging at home is fine if you’re a one-man operation, but for many tradesmen, a depot or business premises charger is far more practical.

The Workplace Charging Scheme (WCS) helps with this.

What it is:
The government will cover up to 75% of the purchase and installation cost of EV charge points, capped at £350 per socket. You can claim up to 40 sockets across one or multiple sites.

Why it’s useful for tradesmen:

• You can have a charger at your lock-up, yard, or business premises

• Multiple vans can be charged overnight if you run a team

• It future-proofs your business if you plan to expand

Example:
Installing two workplace chargers at £1,200 each would normally cost £2,400. With the WCS, you’d only pay £600 in total.

Tax Savings on Electric Vans

Electric vans benefit from three major tax advantages:

Road Tax (VED) Exemption

• Electric vans pay £0 in road tax

• This is an annual saving compared to diesel — typically £320–£500 a year per van

Benefit-in-Kind (BiK) Savings

• If you provide a van for personal and business use, BiK rates for EVs are significantly lower

• This can save employees or directors hundreds in tax each year

First-Year Allowance

• Electric vans qualify for a 100% first-year allowance, meaning you can deduct the full cost from your taxable profits in year one

ULEZ and Clean Air Zone Exemptions

Many tradesmen avoid jobs in certain cities because the Ultra Low Emission Zone (ULEZ) or Clean Air Zones (CAZ)make it too expensive.

• London’s ULEZ charge is £12.50 per day

• Birmingham, Bristol, Bath, and other cities also have daily charges for older diesel vehicles

Electric vans are exempt from these charges, meaning:

• You can accept jobs anywhere without factoring in extra costs

• You can undercut competitors who have to add ULEZ fees to their quotes

• You avoid the hassle of paying daily charges or fines

Interest-Free Loans and Local Grants

Some local authorities and devolved administrations offer their own support on top of national schemes. Examples include:

• Scotland: The Energy Saving Trust offers interest-free loans for electric vans up to £28,000

• Some cities: Local councils have offered scrappage schemes or grants for switching from diesel to electric

It’s worth checking your local council or combined authority’s website to see if there’s extra money on the table.

Combining Incentives for Maximum Benefit

The best part? Many of these incentives can be used together.

Example Combination for a Tradesman:

• Plug-In Van Grant: £5,000 off the van

• Workplace Charging Scheme: £700 off two workplace chargers

• Road Tax Exemption: £1,500 saved over 5 years

• ULEZ Exemption: £1,250 saved per year if you work in London twice a week

• Fuel Savings: £2,500–£3,500 per year

Over 5 years, the combined savings can easily reach £20,000–£25,000 for a single van.

How to Apply for These Incentives

Plug-In Van Grant: No application needed — dealer handles it.

Workplace Charging Scheme: Apply online via the government’s OZEV portal before installation.

Tax Savings: Apply through your annual tax return or company accounts.

ULEZ Exemption: Automatic for qualifying vehicles, but check your registration with Transport for London’s online tool.

Common Misconceptions About EV Incentives

“The grant is only for big companies.”
False — sole traders can claim just like large fleets.

“It’s too much hassle to claim.”
False — the van grant is applied automatically, and the charging grant is a single form.

“These grants will be around forever.”
Unlikely — the government often phases out incentives as adoption grows.

Conclusion: Don’t Leave Money on the Table

For tradesmen, these government incentives can make the difference between an electric van being “too expensive” and a smart financial move. They not only lower the purchase price but also cut your running costs and open up more work opportunities.

The schemes are here now, but they won’t be around forever. If you’ve been waiting for the right time to go electric, this is it.

Next step: Try an electric van in your real working day. Book a 24-hour test drive and see how it performs for your trade.