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 BCH and Salary Sacrifice?
A salary sacrifice scheme is something that should be viewed as a benefit scheme for companies with employee populations of 25 or above. The 100% electric vehicle isn't the only thing included in the scheme, there is also a package of services; including things such as maintenance, early termination protections and insurance. One of the key benefits is that it enables salaried employees the ability to pay for their electric car and associated services using gross pay, and with a low benefit in kind.
A BCH lease is a tax efficient way to hire a car for people that do business miles, particularly for those not mainly remunerated by salary for tax planning purposes.
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 firstname.lastname@example.org or on 020 3870 3892.