Vehicle Incentives
All Tesla cars have zero emissions whilst driving and may be eligible for financial incentives that encourage clean energy use in the UK.
Request a callback from an advisor to learn about incentives.
London Congestion Charge
The London Congestion Charge is a daily charge for driving a vehicle within the charging zone in central London. As of 22nd June, the charge is now applied between 07:00 and 22:00, 7 days per week. The daily charge has also risen to £15 per day for an indefinite period. Currently all battery electric vehicles qualify for the 100 percent cleaner vehicle discount.
Ultra Low Emission Zones
Tesla vehicles are able to access the London Ultra Low Emission Zone without paying the noncompliance fee of £12.50. The zone currently covers all London boroughs. The cost of paying the ULEZ over 3 years could be up to £13,650, when driving into the zone on a daily basis.
Vehicle Excise Duty
With zero emissions whilst driving, all Tesla cars are exempt from Vehicle Excise Duty. This includes an exemption from the luxury car surcharge until 31 March 2025. From 1 April 2025, zero-emission vehicles will be subject to the lowest band of Vehicle Excise Duty, starting at £10 for the first year.
Learn more: Vehicle tax rates, Vehicle Excide Duty Rates
Company Car Tax (Benefit in Kind)
From 6th April 2022, both new and existing Tesla cars are eligible for a 2 percent Benefit-in-Kind (BiK) rate for the 2024/2025 tax year. The BiK rate will be held at 2 percent until 2028/2029 tax year, after which it will increase. The average petrol or diesel vehicle has a BiK rate of 20 to 37 percent.
Learn more: Benefit in Kind, Company Car Tax Rules, 2024 Autumn Budget
100% First Year Allowance (FYA)
First Year Allowance is claimable for up to 100 percent of the cost of qualifying low emission and electric cars. By choosing a Tesla car, your business can claim a 100 percent year one deduction for the cost of the vehicle.
The First Year Allowance is applicable to new vehicles and cars considered new despite previously being used, such as vehicles registered as a sales or service demonstrator by the manufacturer.
In the March 2020 UK Budget, the Government announced that 100 percent FYA for businesses purchasing low emission cars will be extended until 31 March 2026.
Learn more: HMRC Capital Allowance Manual, Capital Allowances
Car Fuel Benefit Charge
As electricity is not classed as a road fuel, Tesla cars have no fuel benefit charge. That means employees are exempt from paying Benefit in Kind on electricity provided by their employer to charge an electric company car.
Advisory Fuel Rates
As electricity is not classed as a road fuel, the car fuel benefit charge does not apply to electric charging. If an employee uses a company car, no Benefit in Kind occurs when charging their vehicle at the workplace.
The advisory fuel rate for fully electric vehicles has been confirmed by HMRC as 9 pence per mile.
Class 1A National Insurance Contributions
Class 1A NICs based on the vehicle's P11D value and relevant BiK rate are applicable as determined by the official carbon emissions and fuel type.
Salary Sacrifice
Salary Sacrifice enables employees to sacrifice some of their gross salary in order to receive the benefit of driving a fully electric company car. As the sacrifice is executed before tax and National Insurance contributions are applied, employees effectively save costs in the acquisition of their new car in a similar way that other savings such as childcare, gym membership or cycle-to-work schemes operate.
From a company’s perspective, this scheme provides an opportunity for organisations to offer employees a new car at a lower cost than they could achieve in the retail market in a tax efficient way. The company may also benefit from reduced National Insurance contribution payments from the scheme.
Salary Sacrifice is either offered by the employer or the leasing provider.
Incentive programs are offered and administered by government agencies. Eligibility and availability vary and are outside of Tesla’s control.
You can get 75 percent off the cost to purchase and install a Wall Connector, up to a maximum of £350 until 31 March 2025.
Learn more: For renters and flat owners, For households with on-street parking