Electric Vehicle Short-term Leases Offer Significant Benefits for Businesses

Enhance your brand image, reduce your carbon footprint, and benefit from abundant tax savings with a short-term corporate electric car lease with FLEXXiLease! 

Discover the benefits of choosing an electric vehicle for your short-term business lease: 

Electric Vehicle Tax Breaks for Business Leases

The government offers tax incentives for business who choose to lease an electric or hybrid vehicle in order to encourage business owners to choose more sustainable modes of transportation.

These are the following tax benefits you could receive by choosing an EV for your company fleet:

Benefit-in-kind

If your employee uses the vehicle for personal use, they will be taxed for Benefit in Kind (BIK), which is based on the level of CO2 emissions the vehicle puts out.

Benefit-in-kind tax rates are significantly lower for employees who choose pure electric cars over petrol or diesel vehicles. The current rate is just 1%, which it is set until April 2025.

Capital Allowances

The full cost of your business electric vehicle can be deducted from your taxable profits for the first year that you lease it, with 100% first-year allowance (FYA) for the cost of the car.

You could also be eligible for Enhanced Capital Allowance if you invest in charging infrastructure for your company’s electric vehicles. This means you could claim 100% of the cost of installing charging points against taxable profits in the first year of leasing the vehicle.

Avoid Congestion Charges and Vehicle Excise Duty (VED)

Electric vehicles are typically exempt from VED and Congestion Charges, saving you costs you would incur by choosing a petrol or diesel vehicle.

VAT Breaks

You are also able to reclaim up to 50% of the VAT costs for leasing the car, as long as the vehicle is only used for business purposes.

Avoid Financial Risk

By choosing to lease an electric vehicle rather than purchasing one for your business, you can avoid being responsible for owning a fixed asset and will not face the risk of your vehicle’s worth depreciating – simply end your lease when the time is right for you, or easily extend it to keep the vehicle for longer than your initial contract.

Reduce your Carbon Footprint

Eco-conscious companies that choose short-term leases for electric or hybrid vehicles can sleep soundly at night, knowing that they are making a positive impact on the environment by choosing to reduce their carbon footprint and protect the Earth.

Positive Brand Awareness

Customers are increasingly aware of brands’ choices when it comes to the environment, so by choosing an eco-friendly vehicle or fleet of cars for your company, you can instil faith in your clients and improve brand loyalty.

Wondering why you should choose FLEXXiLease for your commercial electric vehicle lease? We offer the following differentiators from other leasing companies: 

• A wide range of EVs and hybrid vehicles available for short-term lease
• Low initial payments
• Nationwide delivery  
• Breakdown coverage
• Fixed monthly rates
• Contracts start at just three months
• Manufacturer’s warranty

Find out which type of electric vehicle would be best for your business needs, or contact FLEXXiLease to discuss your requirements!