There are many business leasing benefits for companies looking to transition to EVs. Here are some of the main areas to consider:
Reduced running costs
Running a fleet is costly for many businesses, especially with the price of fuel fluctuating unpredictably. In comparison, running an electric car offers significant savings against traditional fuel costs.
Comparing the electric BMW i3 with a petrol and diesel BMW 3 Series Saloon on Zap Map's journey cost calculator, for example, provides the following estimates for a 100-mile journey:
- BMW i3 – £6.26
- BMW 3 Series Saloon (petrol) - £15
- BMW 3 Series Saloon (diesel) - £14
This provides significant savings compared to traditional fuel, even against the diesel variant.
Lower tax rates
Though choosing an electric car lease doesn’t lead to tax deductions from HMRC, drivers do benefit from reduced Benefit-in-Kind (BIK) tax. The current rates (2026/2027) start at 4% for electric cars and are between 5-14% for hybrids, with it varying depending on electric range. The amount an employee pays in company car tax is based on annual salary and the vehicle's value. With an electric car, you can reduce the overall tax amount considerably.
For more information on BIK and claiming back tax, check out our guide to company car tax.
Lower maintenance costs
Electric cars are slightly different from conventional vehicles because they don’t have as many moving parts. There’s no engine, complex exhaust system, radiators, or an injection system. This means servicing and general maintenance costs are reduced overall.
The battery is also an element to consider when owning a vehicle for longer than eight years, as it begins to degrade. However, this is a minor concern with lease vehicles, as you can switch to a newer car at the end of the contract period.
Additionally, if you take out a maintenance package with your car lease, you can claim 100% VAT on this cost.
Better for the environment
With no emissions from the exhaust, electric cars provide greener and more efficient business travel. This is particularly important for companies looking to reduce their carbon footprint and do their bit for the environment, with your fleet no longer contributing pollution in local communities.
Potential to reduce congestion and clean air zone charges
If your fleet of cars and vans drives into London or other low-emission zones, there is potential to make savings on congestion charges. For example, electric cars are now eligible for a 25% reduction in the charge if they’re registered for Auto Pay, which brings the daily fee down to £13.50 from £18.
Additionally, EVs can drive through Ultra Low Emission Zones (ULEZ) without receiving any charges as they don’t produce any emissions.
When you have several fleet cars, this total soon adds up. As other cities decide to introduce similar low-emission zone charges, EVs will also save money if you do business in these areas.
Grant for workplace charge points
The government is ramping up its electric charge point installation target across the UK. This will improve accessibility to all EV drivers, including company cars. However, to help improve the transition, businesses can access the Workplace Charging Scheme (WCS) grant to install charge points at numerous premises until 31 March 2026. Unfortunately, after this date there is no guarantee that the scheme will continue in the same manner.
This voucher-based scheme gives eligible companies access to upfront funds to purchase and install EV charge points. The grant provides up to 75% of the cost of buying and installing the equipment with a cap of £350 per socket.
Companies can apply for up to 40 sockets across business sites. As an example, if you have 20 locations, you can get two sockets per site. This grant is a great way to make the move to electric easier and gives EV drivers access to electricity for work use.
Help enhance your business reputation
Considering there’s more pressure to improve Corporate Social Responsibility (CSR) practices to move towards a carbon-free future, switching to an electric fleet can provide a sound footing for going green.
Committing to better environmental policies not only benefits your bottom line but also improves your business reputation. Consumers want to see organisations making positive changes, and moving to an EV fleet can help push this forward.
Increase employee satisfaction
Offering a company car to your personnel is an excellent employee benefit. Perks of the job help to improve morale and increase productivity. Plus, it's a great way to encourage greener travel while enabling access to high-spec and high-tech cars with reduced BIK tax rates.
