ULEZ Scrappage Scheme
This could be a great way of saving some money off the ULEZ emission zone charges if your run a small business under 10 employees, that actively have to travel through these zones to complete work every day. Keep reading to find out how...
This scrappage scheme has been put in place by the mayor of London in order to help the small businesses take less of a hit when it comes to paying out their hard-earned cash. What the mayor is allowing small businesses and charities to do is be eligible for a business grant for the amount of up to 3 brand new work vans per company, that of course will be compliant with the EURO 6 rules and regulations. This is a great idea as it will help businesses avoid unnecessary costs and also helps combat the ongoing issue that is environmental pollution.
Should you meet the criteria and be accepted for one of these business grants, there a few choices that you can consider...
Scrappage Scheme Options
CHOICE 1: Congestion Charge Zone Users (CCZ)
You can get a grant of £3500 for your non-compliant van to be replaced, but only if your van has regularly been driving within a Congestion Charging Zone (CCZ). To be eligible your van must have driven through one of these zones 52 times before the month of February the 22nd 2019. This will be determined and tracked by all the dated transactions that can be found in your London road users charging account.
CHOICE 2: EURO 6 Replacement
This is an option suitable for scrappage of a van that was not compliant with the EURO 6 engine standards and is looking to be replaced either by lease or purchase of a brand new EURO 6 compliant van or minibus. The mini-bus is specifically for charities only, and all applicants must be registered at a greater London address. This grant is also worth £3500.
CHOICE 3: Electric Van Contribution
This option will involve the scrappage of a van that also is not compliant with the EURO 6 engine standards. The grant is up to £6000 that breaks down into £3500 for the scrappage of the non-compliant van or minibus, £2500 for a light electric commercial van or minibus and the remainder allowance is allocated to the insurance of the vehicle. Note again the minibus option is for charities only.
If you are a smaller sized business (up to 10 employees) or deemed as a charity that drives a minibus and DOES NOT live in a greater London area then the circumstances change slightly. The vehicle must also comply with the rules in option 1 where it states he vehicle must have passed through a CCZ within 6 months before February 22nd, 2019.
An added bonus that is included in option 3 is that after you have been accepted for the grant, you can claim back the first 3 months straight after you apply for this scheme. We understand that an electric van at this time may not be suitable for everyone. So we recommend finding out more information on whether an electric van is suited for you at this time.
HOW DO I KNOW IF MY BUSINESS AND VAN QUALIFY?
For options 2 and 3 to be accepted and the grant to be processed, you must be able to prove that you are a tenant at an address of a house that is located in the greater London area. You will be able to do this by providing documents/letters from the HMRC, Companies House, or any charity commission. Your business must have turned over up to £632,000 or have a balance sheet of up to £316,000 in the same tax year or at least the proceeding. This would also mean that you would need to be registered on the Companies House or be VAT compliant with the government's rules and regulations.
If you are a charity looking to get the benefits of this scheme, you must make sure that you are registered with your charity commission and have proof of registration to show upon making your request, should you be asked for further proof to continue.
This goes without saying but any van that you would wish to be part of the scrappage scheme must be VAT registered, have a valid MOT and it has to be registered at least a year before the date of February, 22nd 2019 and scrapped by professionals at an Authorised Treatment Facility (ATF) Does your van meet the standards for ULEZ?
We expect in the future for all of our vans and cars to be electric. But that could be many years away from now. For all the time that we will be using petrol and diesel motors, its best to out in safety measures to make sure that we are protecting our environment as much as humanly possible. We believe the new ULEZ will be rolled out to many towns and cities across the UK in the coming years. If you cannot afford to get a van with a EURO 6 engine then this may be a great option for you.
Businesses nowadays have a lot to pay out when it comes to tools, payroll, and business expenses such as tax, etc. It makes sense that schemes like these are created in order to help out workers make as much as possible as this will also help our community and boost our economy.
These ULEZ are pretty much self-explanatory, but we do have a lot more information for you to research right here. We have an in-depth blog that goes into all the data that comes with fuel consumption, the rules and regulations down to the exact NoX and Co2 measurements to make sure that you are aware and in the loop of how and why these zones are put in place to help protect our environment, and also our pedestrians using the footpaths surrounding.
EURO 6 Engines
EURO 6 engine standards have had a great effect on our environment and our cities. We also have another blog that you can read that really dives deep on what exactly makes up a EURO 6 engine, how they are helping the environment and the main benefits it can bring you. We also talk about all the penalty charges that are enforced if you do not abide by these laws and how vans are continually adapting to meet the new regulations.