The RAC's annual report on motoring found that electric car demand is marginally higher than a year ago, with fewer than one in ten drivers polled saying their next car will be battery powered. Then there's the money aspect. So when an employer provides a vehicle, to an employee, the first question should be, is it a van? This is Money is part of the Daily Mail, Mail on Sunday & Metro media group, Get a discount code to save on your internet security, Listen to podcasts and books for less with these offers, Get the ultimate broadband and entertainment bundle, Get great deals on existing and new plans, Have a clean house and save money with these offers, A tale of two investment trusts: SIMON LAMBERT on why Scottish Mortgage's 110% one-year rise and Ruffer's 17% return both tell a story of conviction, Electric cars will kill off changing gear, so should you ditch the manual gearbox and consider a 'gateway automatic' next? For 2015/16, zero-emission vans were charged at 20% of the standard charge; by 2020/21 it had reached 80% of the standard charge and was due to increase to 90% for 2021/22 before being aligned with the standard charge from 2022/23. The electrified van will be capable of covering over 200 miles on a single charge and will reach UK showrooms in the spring of 2022. New electric vans 2021 and beyond The electric van market has taken off in recent times, with numerous new models launched by manufacturers. Nearly eight-in-ten polled (78 per cent) said pure electric cars are still too expensive when compared to conventional vehicles of a similar size. As a paperless office, you can order your van from your mobile phone. Diesel vans also tend to have significantly higher payloads than their electric alternatives, with the lithium-ion batteries which are present in electric vans making the van heavier. This makes life more pleasant for the driver, but also opens up a whole host of opportunities for unsocial-hours services, where a conventional van might otherwise bring noise complaints. Where an employer hasn’t included the van on the P11D, because the private use is limited to ordinary commuting, but the vehicle is subsequently determined to be a car, the arising assessment for tax and Class 1A NIC will be significant. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Fully electric vans like the Nissan E-nv200 Electric, Renault Kangoo ZE Electric and Renault Master ZE SWB Electric produce zero Co2 emissions. For 2020/21, the benefit-in-kind charge for an electric van is £2,782 … Shop with confidence on eBay! When the grant launched in 2011, it provided up to £5,000 off the price of a new 100 per cent electric vehicle or plug-in hybrid model. The issue is that VAT will normally be claimable in full on the purchase of a commercial vehicle. Electric cars are interesting for tax, as the treatment of their “fuel” provision differs between direct supply by the employer and reimbursements of electricity from employee’s homes. This is Money podcast, Bitcoin slumps 10% to a ten-day low, amid fears Biden's administration will bring in tighter regulation, Rock-bottom interest rates spark share trading surge: Long-suffering savers turn to investment platforms as they try to put their money to work, How the value of your phone plummets once a new version launches: Resale prices of the Samsung S20 will plunge a FIFTH in coming months, Only a fifth of motorists were given a refund from their insurer despite huge decline in driving time during lockdown, The half-a-million pound penny! However, this was reduced to £4,500 and subsequently scaled down again in October 2018 to £3,500, as the government looked to curtail the incentive. The cheapest offer starts at £114. New mortgage lender Perenna claims it will let you lock in your interest rate for THIRTY years - but is such a long fix sensible? The report found scepticism over the range of electric cars, with drivers claiming that they wanted to be able to drive 375 miles before they would consider stepping out of their motors with internal combustion engines. Separately, motorists also want assurances that they would be able to charge these vehicles easily when they are away from home, with more than two-in-five drivers (43 per cent) demanding a binding national target for access to public chargepoints -  such as ensuring 95 per cent of the population live no further than five miles from the nearest device. 'Although good finance leasing deals and offers such as free home charging for a set period can help, it appears to be the case that the price of many new electric vehicles remains prohibitively high for a lot of people, with most drivers keen to see more financial help from the government.'. Used Electric Vans available from Loads of Vans in North Cheam, Surrey. Finally, we will keep you updated via text and email. Explore 21,802 listings for Vat free vans UK at best prices. The move is expected to cause a surge in demand for the cleanest vehicles, which are already selling in record numbers in the UK. > Silent running – electric vans are much quieter than diesel vans, to the extent that some are virtually silent (aside from a hum you’ll only hear at low speeds). Or where you have had the original panel van adapted to have seat and seat belt fittings added in the rear space. For VAT, the definition for a van is different than that used for direct tax, and ordinary commuting will not be disregarded for VAT purposes, leaving a difficult calculation for recoverable input VAT on purchase and fuel provided. Check it out! From a VAT perspective some of these vehicles may qualify as ‘commercial’, and this would mean that VAT on their purchase would be recoverable as input tax. As an example – Nissan makes an electric van called the e-NV200, the base model in this range has an OTR price of £24,033 (+ VAT), but there is a government grant available up to the value of £8,000 that goes towards the cost of the vehicle. This, in the judged view made them multi-purpose. Before you put in an offer an that fixer-upper, follow our essential advice to make sure you can do the works you want to, How well do you know car dashboard warning lights? Scroll. The officer’s VAT colleagues might then become involved and recover the input VAT claimed on the purchase of the “van, now car”, together with the VAT on the fuel provided. This would significantly reduce the price gap between an electric model and a comparable petrol or diesel car. If you are considering ways to make your business more sustainable, choosing an electric van could be a great option. Sometimes the HMRC officer’s work has been made easier by the van having a name such as “crew carrier” or “combination van”. The normal rules on when to claim VAT back apply to the purchase of any road vehicle other than a car. How much do electric vans cost? Scrapping the tax would see EV prices drop by an average of more than £5,000. Central Garage, High Street, Fincham, Kings Lynn, Norfolk. In a recent Tax Tribunal, three vans were considered, all of which had been altered to add various seats, windows, shelving, racking, netting … For direct tax, a vehicle is treated as a van when it is a mechanically propelled goods vehicle (a road vehicle of a construction primarily suited for the conveyance of goods or burden of any description) which has a design weight not exceeding 3,500kg. We’ll ask you to confirm this for your first post to Facebook. It is a common misconception that VAT is recoverable on the purchase of electric cars per se, due to some perceived underlying environmental or ‘green’ reason. You may be able to reclaim all the VAT on a new car if you use it only for business. Despite two of the vans in the case retaining significant cargo space, they both had additional seats to the rear of the driver. We use cookies to ensure that we give you the best experience on our website. If you click on them we may earn a small commission. Scrap VAT: Fresh pleas for ministers to do more to boost sales of electric cars has been made by the RAC after it found than fewer than 1 in 10 motorists intend to buy an EV next. New Renault Kangoo Electric Vans, inc Crew Vans, order now for new 21 plate Distance from search location: 77 miles | Stafford, Staffordshire Note: The price displayed for this vehicle (£16126.00) is exclusive of VAT. Nissan e-NV200 Starting from £20,005. Costing less to run than their diesel and petrol counterparts, they hold a lot of appeal for business owners and employers alike. The majority of electric vans have a quoted range in the region of 90-120 miles, and while some vans will do that distance, cold weather can see range drop to as little as 50 miles on some vans. In a recent Tax Tribunal, three vans were considered, all of which had been altered to add various seats, windows, shelving, racking, netting etc. 20% VAT cut on electric vehicles proposed to increase uptake | What Car? Perhaps not, if you provide an employee with a panel van with seats and windows behind the drivers’ seat. The Ford E-Transit will be rear-wheel drive and powered by a 269PS electric motor that draws its power from a 67kWh battery pack, located under the loadspace floor. When a car is provided by the employer for private use then VAT fuel scale charges must be applied however this does not apply to commercial vehicles. However, there is no difference in treatment for VAT purposes between electric cars or those with hybrid or traditional fuel technologies. Bearing the eVito moniker, the new model features an electric motor with 114 bhp and 221 lb-ft of torque, driving the front wheels. Where the car is a leased 50% of the input VAT is blocked. Jordan achieves a masters in civic design with distinction, Soap Media ends the year with triple awards glory, Animation firm hits two million video milestone, ULTIMATE VISUAL SOLUTIONS SECURES FIRST PROJECT IN POLAND AFTER TARGETING NEW…, Smiths Hire marks 50 years in business with major expansion, LOCKDOWN DIY FUELS BLACKPOOL KITCHEN & APPLIANCE COMPANY GROWTH, And Now for Something Completely Different – Renewable Technologies, HOW IMPROVING WASHROOM HYGIENE IMPROVES EMPLOYEE CONFIDENCE. Large vans, like the Renault Master Z.E., are able to offer a payload in excess of a tonne, so electric vans need not be relegated to delivering flowers and pillows. 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