Business Contract Hire (BCH)
Tax-efficient EV leasing for companies — just 2% BiK
BCH works like PCH but for companies and sole traders. Monthly rentals are fully or partially tax-deductible as a business expense (50% for VAT-registered businesses, 100% if used exclusively for business). Combined with the 2% BiK rate for employees driving company EVs, BCH is often the most tax-efficient way for businesses to run electric cars.
- Monthly payments tax-deductible as a business expense
- 2% BiK for employees (2024–25)
- No depreciation risk
- Salary sacrifice schemes available
- Car never belongs to the business
- Mileage limits apply
- VAT recovery capped at 50% for mixed-use vehicles
In the UK, company-car EVs attract just 2% Benefit-in-Kind (BiK) tax in 2024–25, rising gradually to 5% by 2027–28. Combined with salary sacrifice and VED exemptions, business EV leasing is significantly more tax-efficient than an equivalent petrol or diesel car. Rules change annually — we calculate the most cost-effective option for you free of charge.