The electric vehicle (EV) revolution isn’t just for eco-conscious consumers—UK limited companies are rapidly adopting EVs as part of their tax-efficient business strategy.
If you’re a company director or small business owner, there’s a strong case for buying your next car through your business. But how does it actually work—and what do you need to know to get it right?
Let’s dive in.
1. Huge Tax Savings
Electric vehicles attract a Benefit-in-Kind (BiK) rate as low as 2%, meaning company car tax is significantly reduced. In comparison, petrol and diesel cars can attract BiK rates of 25% or more.
2. Full Corporation Tax Relief
Under the current UK tax rules, businesses can claim 100% of the cost of a new electric vehicle against their profits using First-Year Allowances.
3. Low Running Costs
Electric cars are far cheaper to fuel and maintain than traditional vehicles. With fewer moving parts and rising petrol prices, EVs make long-term financial sense.
4. Exemptions and Incentives
No Vehicle Excise Duty (Road Tax)
No Congestion Charge in places like London (subject to conditions)
Lower Class 1A National Insurance costs on company cars
We’ve written a complete, easy-to-understand guide on how to buy an electric vehicle through your limited company, including:
What qualifies as a company car
How the tax works
Real examples and tips
👉 Read our full guide on How To Buy an Electric Vehicle Through Your Limited Company
Switching to electric is more than a green choice—it’s a strategic financial decision. Whether you're a sole director or running a growing team, electric vehicles offer:
Cost efficiency
Tax advantages
Brand credibility (especially with environmentally conscious clients)
At EEVE UK, we specialise in helping limited companies and directors transition to electric driving. Whether you want to buy, lease, or explore business finance options, we’ve got you covered.
Browse our latest EVs, or contact us for personalised advice tailored to your business.
Drive smarter. Drive electric. Drive with EEVE.