WHY GO GREEN FOR YOUR BUSINESS?
Going electric as a business owner, entrepreneur, HR director or an employee can feel overwhelming. There’s tax jargon flying around, scary headlines about charging and someone on LinkedIn insisting it’s all a nightmare. But for many businesses, switching to electric is one of the simplest ways to save money and support staff and the planet - if you know how it works.
That’s where this conversation comes in.
Rebecca Day, Co-Founder of She’s Electric, sat down with Chloe Bushell and Lee Bowtell from Lease Electric to break it all down - from salary sacrifice schemes and government grants to Benefit in Kind and real-world running costs.
Bex asked them all the questions, including the ones you might be a bit too scared to ask.
After this chat, she even went ahead and leased an electric Hyundai Kona through her own business… and, yes, crashed it within a week (not the car's fault). Her son Red gives rave reviews - though he insists on blasting Ice Ice Baby at full volume every time they drive.
Firstly, meet the humans behind Lease Electric
Chloe - Digital Marketing Executive and electric car enthusiast. Her ideal road-trip partner is her sister because they always have good car karaoke. She is currently driving a Volkswagen ID.4 and loving the silence (between the songs).
Lee - EV Leasing Consultant, a professional myth-buster and hates bad drivers. He has driven electric for four years and still hasn’t missed petrol stations. Drives a BYD Seal.
Both know a lot about electric cars. Both were shocked at the price of petrol when we spoke to them.
Okay Bex, start from the beginning: What is salary sacrifice?
Salary sacrifice lets an employee lease an electric car using part of their salary before tax.
By entering an electric car Salary Sacrifice Agreement, you typically save on Income Tax and National Insurance, alongside accessing fleet discounts and possible VAT savings, resulting in some drivers saving up to 60%.
It usually includes:
A brand-new electric car
Insurance
Maintenance
Breakdown cover
Basically, it’s car leasing without the usual stress - no credit checks and no deposit to find. The only thing to note is that the amount you sacrifice can’t reduce your salary below the National Minimum Wage.
What's in it for the business?
No upfront costs
Corporation tax relief
Happier employees
A sustainability win you can actually prove
It’s one of the rare things that’s good for people and spreadsheets.
Talk to me about benefit in kind (BiK) like i’m five
BiK is the tax you pay for having a company car.
How much you pay depends on three things:
The car’s CO₂ emissions
The car’s P11D value (basically its list price)
Your personal tax rate (20%, 40%, etc.)
BiK rates are set by the Government and can change every tax year - which matters, because many cars ordered now won’t be delivered until the 2026/27 tax year.
Here’s the big difference:
Petrol & diesel cars: up to 37% BiK
Electric cars (zero emissions): 4% BiK for 2026/27
Lease Electric has seen people go from paying £7,000 a year in tax… to £200. That’s basically a pay rise without the business spending more money.
Charging sounds complicated. Is it?
Not really.
Charge at home overnight like your phone
Charge at work (often free, and no Benefit in Kind tax)
Businesses can install workplace chargers and claim up to 75% of the cost back
There’s even a £350 grant for home chargers at employees’ houses through the Workplace Charging Scheme (UK Government) - open until 31st March 2026.
Yes. Really.
Lease vs buy: Why lease an electric car through the business?
Leasing can be:
Cleaner
Easier
Better for cash flow
Kinder to accountants
You can:
Offset 100% of lease costs against corporation tax*
Claim 50% of VAT on the lease
Claim 100% of VAT on maintenance
*Only the finance element of the lease rental counts toward corporation tax relief - not the full lease cost.
Salary sacrifice vs business contract hire - what’s the difference?
Business Contract Hire: This is where the company leases the car and provides it to an employee or director as a company car. The business holds the lease, gets the tax benefits, and takes responsibility for the vehicle.
Salary Sacrifice: The employee pays for the car from their gross (pre-tax) salary, but the lease is held by the company. That means the car counts as a company car for tax purposes, giving all the usual tax benefits, while the company still takes responsibility for the vehicle (so it’s not a personal car). It’s perfect for teams who don’t already have company cars but want one without the usual financial headache.
Be honest: Isn’t range still a bit… scary?
The average electric car range now outlives a human bladder - and we stand by that.
Most modern electric cars comfortably do 250–350 miles - with newer models, like the upcoming BMW Ix3 and Volvo EX60 achieving 500 miles!
And fun fact: driving at 65mph instead of 70mph can add dozens of miles to your range.
What about running costs?
This is where things get spicy.
Charging at home: as low as 2–3p per mile
10,000 miles a year? Around £200–£300
Servicing costs: roughly a third of petrol or diesel
Fewer moving parts = fewer things to break
Also, no accidental petrol station snacks. (RIP Ginsters.)
Final thoughts from Lease Electric
Most businesses don’t switch because they think it’s complicated. In reality, they just haven’t been shown how simple it can be.
The best advice? Speak to people who actually drive electric. And get bums on seats - because nothing builds confidence faster than real-world experience. A 24- or 48-hour test drive, doing your normal day-to-day journeys, is one of the easiest ways to tackle range anxiety head-on.
Start small.
Ask questions.
And remember - every petrol station you don’t visit is a tiny personal victory