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Electric Vehicles for Business and Fleet

Electric cars and vans remain an attractive option for many UK businesses, especially where vehicles are used for company cars, salary sacrifice schemes, or lower-emission fleet policies.

While some of the incentives have changed in recent years, fully electric vehicles can still offer significant advantages for employers and employees, including low Benefit in Kind (BiK) tax, reduced running costs, lower servicing requirements, and support for corporate sustainability targets.

At Select Car Leasing, our Business and Fleet team can help you compare electric, plug-in hybrid, and hybrid vehicles, understand the latest tax position, and choose a leasing solution that fits your organisation’s budget, mileage profile, and operational needs.

Get in touch with our Business & Fleet team now for up-to-date advice on electrifying your fleet.

Business and Fleet Leasing Support from Select

With over a decade’s experience in fleet management services, Select Car Leasing provides tax-efficient business and fleet leasing solutions for companies of all sizes.

Our dedicated Business and Fleet team can review your current vehicle requirements, future fleet plans, mileage profile and budget before recommending a leasing solution that fits your organisation.

That support can cover everything from electric company cars and salary sacrifice schemes to cash car allowance drivers, sale and leaseback options, affinity schemes, fleet consultancy, fleet management and insurance products.

The aim is simple: to help your business reduce costs, stay compliant, support your employees and make confident decisions as more fleets move towards electric and lower-emission vehicles.

You can also watch our video introduction with Nicki Shields for a quick overview of how electric vehicles can support your business and fleet strategy.

Electric Vehicle Types

Not every electrified vehicle works in the same way, so the best option depends on your drivers, mileage, charging access and tax priorities. A fully electric vehicle runs only on battery power and usually offers the lowest company car tax. A plug-in hybrid combines an engine with a rechargeable battery for some electric-only driving. A conventional, or self-charging, hybrid uses a smaller battery that charges as the car drives. For fleets, the key is to compare whole-life costs, not just monthly lease price.

Salary Sacrifice

A salary sacrifice scheme lets an employee give up part of their gross salary in return for a non-cash benefit, such as an electric lease car. Because payments are taken before tax and National Insurance, employees can reduce the effective cost of driving a new EV, while employers may improve recruitment, retention and staff satisfaction. Select can support your business with setting up and administering a scheme, helping you keep the process clear, compliant and easy for employees to understand.

Cash Car Allowance

A cash car allowance gives employees an additional payment instead of a company car, allowing them to choose and fund a vehicle in their own name. It can be a flexible option for drivers who want more control over their car choice, but employers still need to consider duty of care, insurance, mileage and grey fleet responsibilities. Select can support cash allowance drivers with competitive Personal Contract Hire options while helping your business maintain suitable vehicle standards and manage driver obligations.

Sale & Leaseback

Sale and leaseback can help businesses release capital tied up in owned vehicles by selling them and leasing them back for continued use. This can improve cash flow, simplify budgeting and give your organisation a clearer route towards a more modern, lower-emission fleet. It may also help you phase in electric vehicles over time rather than replacing everything at once. Select can review your existing vehicles and explain whether sale and leaseback is a practical option for your business.

Affinity Schemes

An Affinity Scheme can give employees, members or approved groups access to preferential vehicle leasing offers through your organisation. It can be a useful way to add value without operating a full company car scheme, while still supporting drivers who want access to newer, more efficient vehicles. For businesses, it can strengthen employee benefits without creating unnecessary administrative complexity. Select can help structure an affinity scheme that works for your organisation and gives eligible drivers a straightforward route into leasing.

Fleet Consultancy

Select Car Leasing’s dedicated team of advisors can provide fleet consultancy on matters such as pool mileages, taxation rules and industry trends, giving you peace of mind in your decision-making process. We also offer a ‘Whole Life Cost’ approach to your vehicle policy, which represents a smarter way of selecting vehicles for your fleet. This takes into account all of the costs associated with running a vehicle, including fuel, insurance, servicing, maintenance and repairs (SMR), tax and national insurance, and it considers these costs over the entire contract period.

Fleet Management

We recognise that firms need constant fleet analysis to ensure their vehicles are operating in the most cost-effective and efficient way possible. That is why Select Car Leasing provides continued and robust scrutiny throughout the agreement. Our legally compliant competitive tendering process, using single or multiple funders, helps ensure your business secures the right funding route without putting the brakes on your bottom line. This gives you clearer oversight, stronger cost control and practical support throughout the life of your fleet agreement.

Insurance

Our Contract Hire GAP insurance offering provides important financial protection, as well as peace of mind, during the period of your leasing contract. If your vehicle is declared a total loss because of an accident, theft, fire or flood, your motor insurer may not pay the full amount needed to settle the lease balance. With Contract Hire GAP insurance, any value shortfall can be protected, helping to remove the financial burden and give your business added reassurance.

Here’s a quick example of how fully electric vehicles can now radically reduce your fleet costs:

Electric vehicles often have lower running costs than traditional cars and vans. The fuel cost of a petrol/diesel car is about 20p per mile at current fuel prices, whereas it's roughly 10p per mile in an all-electric car if you charge at home. You can get the per mile cost down even further to about 3p by signing up to an EV-friendly energy tariff.*

In addition, electric vehicles also enjoy:

  • Lower servicing and maintenance costs
  • Lower fuel costs, especially when charged at home or on an EV-friendly tariff
  • Vehicle tax still applies, but EVs can remain cheaper to tax than many petrol or diesel cars
  • Reduced Congestion Charge costs in London where the vehicle qualifies and is registered correctly
  • No ULEZ charge for fully electric vehicles in clean air zones where zero-emission vehicles are accepted
  • Access to selected government grants, where eligible
  • 100% first-year capital allowances for qualifying zero-emission cars and EV charge points

When you put it all together, the whole life costs of an electric vehicle can be lower than a traditional petrol or diesel car. We provide worked examples to show you where the savings can be achieved.

* Assuming 39.5 mpg; fuel at £1.72 a litre; EV efficiency of 4 miles per kWh; normal home charging rate of 24.67p per kWh, or off-peak home charging rate of 9.5p per kWh.

Want to start a conversation?

Simply phone us on 0118 304 8690 or email corporatefleet@selectfleetsolutions.co.uk

Low Benefit in Kind (BiK) Tax

There are still major tax advantages for employees who choose a fully electric company car.

Benefit in Kind tax is based largely on a car’s value, emissions and fuel type, and zero-emission vehicles continue to sit in the lowest BiK bands.

For the 2026/27 tax year, fully electric company cars attract a 4% BiK rate, rising to 5% in 2027/28.

That remains significantly lower than many petrol, diesel and hybrid alternatives, helping employees reduce their personal company car tax bills.

Salary Sacrifice

Salary sacrifice can make electric vehicles more affordable for employees who are not entitled to a company car.

The employee gives up part of their gross salary in return for a lease car, with payments taken before income tax and National Insurance.

Because electric cars remain in low Benefit in Kind tax bands, monthly costs can be attractive compared with funding a car privately.

Actual savings depend on salary, tax rate, vehicle choice, lease terms and the latest BiK position, and Select can calculate figures for your staff.

Next Steps

Contact Select Car Leasing for a free consultation on how electric vehicles could benefit your business.

The team can help you compare cars and vans, review tax and running-cost considerations, and identify suitable leasing options for your organisation and drivers.

Whether you are moving one employee into an EV or planning a wider fleet transition, Select can support you with practical guidance, competitive lease deals, and ongoing business fleet expertise.

For further details, phone 0118 304 8690 or email corporatefleet@selectfleetsolutions.co.uk

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Don't just take our word for it. We're rated at 4.9/5 on independent reviews website Trustpilot from over 49,994 genuine customer reviews
So simple, the website is easy to use, clear and accurate, I just chose the car and sent an enquiry, then Danny contacted me to confirm my choice. He made it so easy for me, I just sat back while he did the legwork sorting the finance and ordering the car. Once he'd put everything in place, just a few signatures from me and the deal was done, all from the comfort of my armchair. Thanks Danny, we'll definitely be back for our next car
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Friday, 19/06/2026

Good communication, good service. Delivery was very efficient and as expected. Handover was professional and friendly.
Wayne Saud

Friday, 19/06/2026

This is my 6th lease car through Select Car Leasing. The offers are unbeatable, the systems and IT top-of-the-line and the support and customer care provided - in my case by David Shaw - was excellent. Highly recommended company to deal with.