25/05/2026
⚡ Did you know a limited company director driving a £40,000 electric company car pays just £40 a month in personal tax?
Compare that to over £370 a month for the same car with a petrol engine. That's a difference of over £12,000 across a three-year lease.
Leasing an electric vehicle through your limited company gives you:
✅ Reduced Benefit-in-Kind tax (3% for EVs in 2025/26 vs up to 37% for petrol/diesel)
✅ Full lease payments deductible against corporation tax
✅ Up to 50% VAT reclaim on lease payments (100% if business use only)
But the structure has to be right. Using a personal contract hire instead of business contract hire, or getting the home charging reimbursement wrong, are two mistakes that can cost more than expected.
If you're a director thinking about an electric company car, it's worth speaking to an accountant before you sign anything.
Read the full breakdown here 👇
https://arb.accountants/lease-electric-car-through-limited-company/
How to lease an electric car through your limited company, claim the tax benefits, and calculate the BIK charge. Updated for 2025/26 with a worked example.