In a bid to clean up the air quality in London the Mayor of London, Sadiq Khan, has doubled the incentives available in 2020 for small businesses to replace older van’s with greener alternatives. Vans that frequently operate in Central London and breach the ultra low emission zone’s pollution rules are now eligible for a £7,000 reward. The incentive available to small businesses that wish to switch to an all electric vehicle have also being increased with a grant of £9,500 now available. Scraping your vehicle must then be done only through an Authorised Treatment Facility (ATF) where a Certificate of Destruction (COD) needs to be produced and provided to TFL. Scrapping your vehicle through Car.co.uk is a great way to ensure you are compliant as we only work with leading ATF’s in the UK.

The Ultra Low Emission Zone (ULEZ) is a geographical zone that represents an area of central London which is the same as the Congestion Charging Zone. Under the scheme, which operates 24 hours a day every day (excluding Christmas day), vehicles that do not meet ULEZ emission standards are liable to pay a daily charge to enter this zone. Whilst some vehicles may be exempt, the current daily charges are:

• £12.50 for cars, motorcycles and vans (up to and including 3.5 tonnes)
• £100 for lorries & heavy vehicles (over 3.5 tonnes) 
• £100 for buses & coaches (over 5 tonnes)

 
Eligible Vehicles for the ULEZ Scrappage Scheme

For a vehicle to be eligible for the scrappage scheme it is dependent on the type of vehicle, the unladen weight and most importantly, the emissions – only vehicles that fail to meet ULEZ emissions are included. Furthermore, the vehicle must be owned by an eligible business or registered charity (as outlined below) for a period of 12 months before the commencement date of the scheme (22 February 2019), have a current MOT, be licenced for use on the UK roads, insured for business use and most importantly scrapped through an ATF.

Vehicles that are eligible for the scrappage incentive include:

Up to and equal to 1.205 tonnes:
•    Small vans

Over 1.205 tonnes and less than or equal to 3.5 tonnes:
•    Larger vans
•    4x4 light utility vehicles
•    Motorised horseboxes
•    Pickup Trucks
•    Dual purpose vehicles
•    Breakdown and recovery vehicles

2.5 tonnes to 3.5 tonnes:
•    Ambulances 
•    Motorcaravans
•    Motorised hearses

Less then or equal to 5 tonnes:
•    Minibuses (more than 8 passenger seats)

Minimum emission standards

•    Petrol: Euro 4
•    Diesel: Euro 6

If you have one of these vehicles that do not meet the above emissions, then you may be eligible for the scrappage scheme. If you are not sure if your vehicle is eligible then TFL provides a vehicle check service that can be found here.

Eligible Firms

To be eligible for the grants then a firm’s vehicle must be either frequently used with in the Congestion Charging zone, as defined by having been driven at least 26 times between 22 August 2018 and 22 February 2019, or the business must be registered at a Greater London address. Eligible firms are then able to scrap up to 3 vehicles under the scheme.
Due to a low take up of the offer in 2019 recent changes have seen an extension to the criteria to include more businesses. Businesses that are eligible now include micro businesses, small businesses, sole traders and registered charities. Criteria, as outlined on the TFL website provides specific measures for each of these that must be met:

Micro businesses must have:
•    10 or fewer employees
•    Up to £632k turnover OR up to £316k balance sheet total in the preceding and current financial year AND
•    Companies House registration as an active company in the UK OR be VAT registered in the UK

Small businesses must have:
•    50 or fewer employees
•    An annual turnover of not more than £10.2 million OR a balance sheet total of not more than £5.1 million AND
•    Companies House registration as an active company in the UK OR be VAT registered in the UK

Sole traders must be:
•    A self-employed person who owns and operates a business as an individual

Charities must be an:
•    Entity registered with the Charity Commission as an active charity

Source: https://tfl.gov.uk/modes/driving/ultra-low-emission-zone/scrappage-scheme#eligibility

Available Options

Once you know that your business and vehicle are both eligible then there are several options available to you. Frequent users of the Congestion Charge area (that reside out of Greater London) are then eligible for a grant of £7,000 along with those who are registered with-in Greater London and purchase a Euro 6 replacement. For businesses registered in Greater London that scrap their non-compliant ULEZ vehicle and replace it with an all-electric alternative then they are eligible for a further £2,500 grant taking the total payment to £9,500.

Applying for the grant

In order to apply for the grant it is important that you read the terms & conditions on the TFL website and then scrap your vehicle through an ATF and ensure that you request your COD. Car.co.uk provides an instant quote and a guarantee that we only work with licenced operators who can facilitate this. The application process can be completed online via the TFL website here.

Get a quote today, with Car.co.uk! Not only then can you benefit from the grant but we will also be able to provide you with a competitive price and a free collection service.