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.

Benefits for all Tesla drivers

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% cleaner vehicle discount.

More information: TFL Discounts and Exemptions


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.

More information: Ultra Low Emission Zones

ULEZ Scrappage scheme

Transport for London launched a scrappage scheme in preparation for the Ultra Low Emission Zones expansion on 29 August 2023. From 21 August 2023 anyone with an eligible vehicle living in one of the 32 London boroughs or the City of London can apply to get up to £2,000 for scrapping a non-compliant car and switching to more sustainable modes of transport.

More information: Scrappage scheme


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 from 1 April 2020 until 31 March 2025.

More information: Vehicle tax ratesBudget 2020


Benefits of Tesla for Business

Company Car Tax (Benefit in Kind)

From 6th April 2022, both new and existing Tesla cars are eligible for a 2 percent BiK rate for the 2022/23 tax year. The BiK rate will be held at 2 percent for 2023/24 & 2024/25. The average petrol or diesel vehicle has a BiK rate of 20 to 37 percent.

More information: Benefit in Kind, Company Car Tax Rules, Review of WLTP and Vehicle TaxesBudget 2020

100% First Year Allowance (FYA)

First Year Allowance is claimable for up to 100% of the cost of qualifying low emission and electric cars. By choosing a Tesla car, your business can claim a 100% 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% FYA for businesses purchasing low emission cars will be extended until 31 March 2025.

More information: HMRC Capital Allowance Manual

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.

More information: Tax benefits for ultra low emission vehicles

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.

More information: AFR/AMAPs/MAR and Fuel Benefit

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.

More information: An employer's guide to Class 1A National Insurance contributions

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.

More information: Salary Sacrifice

Incentive programs are offered and administered by government agencies. Eligibility and availability vary and are outside of Tesla’s control.

Electric Vehicle Chargepoint Grant

You can get 75% off the cost to purchase and install a Wall Connector, up to a maximum of £350.

More information: For renters and flat owners, For households with on-street parking