As Q4 2025 gets underway, many businesses review budgets and make decisions before the new tax year. For fleets – whether you operate a few cars or a national network – this is the ideal window to optimise cost, simplify administration and reduce tax. Recent changes to company‑car tax, VAT rules and electric‑vehicle incentives mean it pays to act before 31 December 2025.
And the best bit? It’s easier than you might think. At Car Leasing Made Simple, we help businesses build tax-efficient, easy-to-manage fleets every day. Here’s what to think about before year-end.
Why Now Is a Good Time to Review Your Fleet
As Q4 kicks off, most businesses are planning ahead, wrapping up budgets, and making changes before the new year hits. It’s also when funders and manufacturers tend to offer stronger incentives to hit their annual targets – which means better deals, more availability, and quicker delivery.
If you’re thinking about upgrading or expanding your fleet, making those decisions before December 31st could help you reclaim VAT, reduce your tax liability, and lock in current rates before changes come into effect in 2026.
You can take a look at what’s currently available on our business car leasing page.
Why Business Leasing Works So Well
Business Contract Hire (BCH) is one of the most tax-friendly and straightforward ways to run company vehicles.
If your business is VAT-registered, you can usually reclaim half the VAT on the finance part of the lease – and all of the VAT on any maintenance package you choose to include. Because leased vehicles don’t sit on your balance sheet, they’re treated as an operating expense, not an asset, which keeps your accounting simple and helps with cash flow.
Plus, the monthly costs are fixed and easy to budget for, especially if you add maintenance – no nasty surprises when it comes to servicing or tyres. If you want to understand how BCH compares to other options, we explain it clearly in our guide to how leasing works.
Thinking About Going Electric?
If you’re not already including EVs in your fleet, now is a great time to consider it. Not only are electric vehicles cleaner and cheaper to run, but the tax benefits are still extremely generous.
In 2025, electric company cars are taxed at just 3% Benefit-in-Kind (BiK), compared to 25% or more for petrol or diesel. That’s a huge difference – and one that benefits both the employer and the employee. You’ll save on National Insurance, your staff pay less tax, and your business moves closer to its environmental goals.
Despite planned increases, EV drivers will still pay much less BiK tax than those driving petrol or diesel vehicles. For example, a £30 000 EV taxed at 3 % results in a taxable benefit of £900 (costing a 20 % taxpayer £180 per year), while a similar petrol car emitting 120 g/km taxed at 29 % results in a benefit of £8 700 (costing £1 740 per year at 20 % tax).
We’ve made it simple to explore your options – just head to our electric car leasing section to get started.
Salary Sacrifice: A Simple Way to Offer EVs to Staff
Salary sacrifice is becoming more popular for a reason. It allows employees to lease a brand-new EV through their gross salary, meaning no upfront cost, no credit check, and big savings on tax and National Insurance.
It’s also a smart move for employers – you’ll save on NI contributions and offer a benefit that’s increasingly attractive to your team. At Car Leasing Made Simple, we’ve helped many businesses set up salary sacrifice car schemes that are easy to manage and fully compliant. If it’s something you’re considering, we can walk you through how it works.
Questions We Hear from Fleet Managers
We often get asked whether you can mix electric and petrol/diesel vehicles in one fleet – and the answer is yes. In fact, many businesses do. Leasing gives you the flexibility to build a fleet that works for different needs, whether that’s short local trips or long-distance driving.
Another common question is whether maintenance is included. It’s not standard, but we always recommend adding it. It covers servicing, breakdowns, tyres, and more – and makes it much easier to manage costs and downtime.
And yes, we also lease vans and commercial vehicles. You can browse van leasing offers here if that’s something on your radar.
Final Thoughts
Fleet management doesn’t have to be complex. With the right support, you can put together a setup that’s cost-effective, tax-efficient, and easy to manage — whether you’re updating a few cars or making a bigger shift toward electric.
Q4 is the best time to act. There are great offers available, EV stock is moving quickly, and rates are set to rise in 2026 – so now’s the moment to take advantage.
If you’d like some help reviewing your fleet or talking through your options, get in touch with our business team – we’re always happy to help.
Or, if you’re ready to explore offers now, you can start your search here.