Switching your business fleet to electric vehicles (EVs) is no longer a future-facing strategy — it’s a practical and cost-effective decision right now.
From generous tax incentives to lower running costs, charging grants, and an increasing number of competitive lease offers, EVs make more sense than ever for SMEs, large fleets, and public sector organisations.
Whether you’re updating your company car policy, scaling up your delivery network, or trying to reduce operating costs, here’s everything you need to know — and how electric company car leasing can make that transition easier, faster and more flexible.
Why Leasing an Electric Fleet Makes Business Sense
Leasing is one of the easiest ways to upgrade to electric. Instead of a large capital outlay, you spread the cost over fixed monthly payments — helping you preserve cash flow while accessing new vehicles with the latest tech and safety standards.
With no resale risk, road tax included, and optional maintenance packages, leasing also reduces admin time and provides full transparency over lifetime costs. It’s a smart, low-commitment way to electrify your fleet — whether you’re operating two vehicles or two hundred.
Capital Allowance and Tax Benefits for Electric Vehicles
The UK government continues to incentivise electric adoption. If you purchase an electric vehicle outright for your business, you can still claim 100% of the vehicle’s cost against your taxable profits via the capital allowance scheme.
While capital allowances aren’t available on leased vehicles directly, many of the savings are factored into the lease pricing. This means electric lease deals often reflect tax incentives upfront, making them even more affordable than they appear.
See our current electric vehicle lease offers
Government Support for Charging Infrastructure
To make the switch easier, the Workplace Charging Scheme covers up to 75% of the cost of installing EV charge points (up to £350 per socket for a maximum of 40 sockets).
If you’re supporting remote staff, offering electric company cars, or managing a delivery depot, this grant is a simple way to reduce upfront costs. Applications are straightforward, and many approved installers will handle the paperwork for you.
Low BIK Tax: A Major Win for Employers and Drivers
Electric vehicles remain the most tax-efficient option when it comes to Benefit-in-Kind (BIK) for company cars.
- 3% in 2025/26
- 4% in 2026/27
- 5% in 2027/28
Compared to petrol and diesel vehicles, which are typically taxed at 20–37%, the savings are substantial — especially when scaled across a team.
Leasing makes this simple to manage. You control the spec, mileage, and term, while your employees enjoy lower personal tax bills — a great recruitment and retention tool.
Lower Running Costs — with Breakdown Support Included
According to the British Vehicle Rental and Leasing Association (BVRLA), EVs cost as little as 2p–4p per mile to run. That’s a significant drop from the 14p–18p range typical of diesel and petrol cars.
And when it comes to roadside support, adding a maintenance package can be a great way to future proof your business in the case of any problems.
This kind of support adds reassurance, especially for larger fleets where efficiency matters.
Mileage, VAT and Simpler Accounting
Electric company cars and vans qualify for standard HMRC mileage reimbursement rates — 45p per mile for the first 10,000 miles and 25p per mile after that. This keeps reporting straightforward and makes it easy to manage business travel expenses.
If you’re leasing through your VAT-registered business, you can also reclaim a portion of the VAT on monthly payments and maintenance costs, depending on personal vs business usage.
Leasing simplifies this process. It separates out costs clearly, supporting better record-keeping and forecasting.
Supporting Your Sustainability Strategy
Moving to an electric fleet is also an important step in meeting corporate social responsibility (CSR) targets and improving your business’s environmental profile.
Over its lifetime, a fully electric vehicle emits 15% to 40% less CO₂ than a petrol or diesel equivalent. Whether you’re reporting on emissions, aiming for ISO standards, or bidding for sustainability-conscious contracts, electrifying your fleet sends the right message.
Why More Fleet Managers Are Leasing Electric in 2025
Electric leasing offers the right blend of cost savings, control and flexibility. Here’s why more businesses are going electric this year:
- Fixed monthly payments make budgeting simple
- Low BIK and fuel costs save money for employers and employees
- Road tax and delivery are included with most lease deals
- No depreciation or resale risk — just return the car at the end
- Optional servicing and breakdown cover included
And with more manufacturer-led offers than ever, many electric lease deals come with short lead times and in-stock options ready for immediate delivery.
Explore in-stock cars available now
Thinking About Making the Switch?
We know that upgrading your fleet is a big decision — but we’re here to make it simple. From helping you choose the right electric vehicles to navigating grants and tax benefits, our team will support you at every step.
If you’re considering electric company car leasing in 2024 or planning ahead for 2025, let’s have a conversation.