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Business Contract Hire (BCH) · Volvo

Electric Volvo 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.

UK tax for electric cars

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.

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Models

Volvo · Electric cars

All finance options
Business Contract Hire (BCH)

Which option suits you?

Advantages

  • Monthly payments tax-deductible as a business expense
  • 2% BiK for employees (2024–25)
  • No depreciation risk
  • Salary sacrifice schemes available

Watch out for

  • Car never belongs to the business
  • Mileage limits apply
  • VAT recovery capped at 50% for mixed-use vehicles
Comparison

Volvo Electric cars compared

ModelRangeBatteryRapid charging0–100
Volvo EC40356 miles79 kWh200 kW7.3s
Volvo ES90435 miles106 kWh350 kW5.5s
Volvo EX30298 miles64 kWh153 kW5.3s
Volvo EX40356 miles79 kWh200 kW7.3s
Volvo EX90381 miles107 kWh250 kW5.9s
Our services

Everything for your electric mobility

Personal Contract Hire (PCH) · Personal

Drive a new EV for a fixed monthly payment — no ownership worries

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Personal Contract Purchase (PCP) · Personal

Option to buy at the end — or simply hand it back

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Hire Purchase (HP) · Personal

Own your EV at the end — straightforward financing

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Business Contract Hire (BCH) · Business

Tax-efficient EV leasing for companies — just 2% BiK

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