What is a business lease?

Updated: Aug 10, 2020

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 lease 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

  • 0% Benefit in Kind for tax year 2020-21 (increasing 1% annually until 2023)

  • Fixed monthly costs for the term of your agreement

  • Low 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?

Business contract hire has the same payment profiles as Personal contract hire - and is only available to businesses. The pricing may sometimes reflect offers available to businesses, and the different services required to support businesses than a personal consumer - e.g. understanding Benefit in Kind rates. The rates for BCH are also typically show exclusive of VAT

We would love to help your business switch to electric driving - from choosing the right vehicles; to sourcing the best terms and funding; to then getting set up with clever energy tariffs for EV drivers and smart tech to make that all easy.

Contact us now at hello@octopusev.com or on 020 3870 3892. Or you can also check out our latest BCH offers here.

2nd Floor, UK House, 164-182 Oxford Street, London W1D 1NN

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Any prices quoted are subject to changes in law, regulation, tax or duty beyond our reasonable control.

Octopus Electric Vehicles Limited is authorised and regulated by the Financial Conduct Authority, firm reference number 809736, company number 10754317. Our registered address is 33 Holborn, London EC1N 2HT. Octopus is a credit broker and a vehicle hirer but not a consumer credit lender. Octopus may introduce You to a panel of third-party lenders or hirers and in such circumstances may receive a commission.