Business Contract Hire (BCH) is a great way to finance your next 100% electric car. With savings to be made on Benefit in Kind, VAT and fuel, you can not only save financially, but also help protect the environment for future generations.
First things first, what is BCH?
BCH is a type of leasing which requires an initial rental payment of either 3, 6, 9 or 12 months, and an ongoing monthly rental payment dependent on which car you are leasing, the mileage and the length of the agreement. You can take a look at some example costs here.
What are the benefits of leasing 100% electric for my business?
● Claim up to 50% VAT on your monthly rental through a business lease
● 0% Benefit in Kind for tax year 2020-21 (increasing 1% annually until 2023)
● Fixed monthly costs for the term of your agreement
● Low self-maintenance costs for most electric vehicles
● 100% electric and 0g/km carbon emissions
● Up to 90% fuel saving through switching to electric
What are the requirements of BCH?
All your business will need is to have been operating for a minimum of 2 to 3 years as a limited company, with all of your accounts up to date.
What are the key differences between PCH and BCH?
The contracts are essentially the same, however businesses may also be able to benefit from VAT reclamation of up to 50% of the monthly rental which is why Business Contract Hire rental payments shown are exclusive of VAT.
We would love to help you on your journey to finding the best deals for you and your business, you can find out more about our BCH offers here.