Why Leasing an Electric Car Can Save You Thousands?
Benefit In Kind Tax: If you run a business and are thinking about leasing a car, electric vehicles (EVs) are a game‑changer thanks to low Benefit in Kind (BIK) tax rates. Here’s what you need to know:
What is Benefit In Kind?
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BIK is a tax you pay if you get a company car you also use for personal driving.
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How much you pay depends on the car’s price, emissions, and your income tax band.
Why Electric Cars Are Cheaper on Benefit In Kind
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Petrol and diesel company cars can have BIK rates as high as 37%.
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Electric cars are currently much lower, just 2% in 2024/25, rising slowly to 9% by 2029/30.
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That means you could pay hundreds instead of thousands in company car tax every year.
Example of Benefit In Kind
A £40,000 electric car for a 40% taxpayer in 2025/26 (3% BIK):
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£40,000 × 3% × 40% = £480 a year
That’s just £40 a month in tax, compared with several hundred for a petrol or diesel.
The Benefit In Kind Rates for EVs
| Tax Year | Benefit In Kind Rate |
|---|---|
| 2024/25 | 2% |
| 2025/26 | 3% |
| 2026/27 | 4% |
| 2027/28 | 5% |
| 2028/29 | 7% |
| 2029/30 | 9% |
Why Lease an EV with Premier Vehicle Leasing?
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Save on tax thanks to low Benefit In Kind rates.
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Lower monthly costs through salary sacrifice and leasing.
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Drive the latest models like the 2025 BMW iX2 with no hassle.
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One simple package, maintenance, road tax, and support included.
Want to See the Savings in Action?
Check out our YouTube Short video we made about Benefit In Kind Tax, featuring Elliott with the brand new BMW iX2 that was delivered to one of our customers.
EV vs Petrol & Diesel: Monthly Cost Example
(Based on a £40,000 car for a 40% taxpayer in 2025/26)
| Vehicle Type | BIK Rate | Annual BIK Tax | Monthly BIK Tax |
|---|---|---|---|
| Electric Car | 3% | £480 | £40 |
| Petrol Car | 28% | £4,480 | £373 |
| Diesel Car | 31% | £4,960 | £413 |
Start Saving Today
Don’t miss out on these big tax benefits. Contact us today to explore our EV leasing offers and see how much you could save, or simply click below to browse our latest electric vehicle offers.