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Electric car grant, is VAT included?

I was expecting to see a £2,500 reduction on our invoice for the price of the car. Instead, I see £2083.33 to which they add VAT, to make £2,500. Shouldn't I expect the whole £2,500 off the price?

Asked on 4 January 2022 by Mark Hammond

Answered by Sarah Tooze
The plug-in car grant up until 15 December 2021 was £2,500 off the recommended retail price of a car priced at £35,000 or below, including VAT, so this is correct.

If you cover no more than 100 miles per day and have easy access to a charging point at home or work, then an EV is ideal for you.

Is an electric car right for me?
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