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Questions about Business Contract Hire

You asked, we answered. Here are our most asked questions about our business contract hire for EVs.

Our business contract hire offers for EVs

On the fence about business contract hire for EVs? Look no further for some of the best EV business contract hire offers around.

Are all the cars on BCH brand new?

Yes, squeaky clean and straight from the factory.

We order some EVs in batches upfront, so even if they are not freshly produced they have not been driven apart from the distance from the garage to you.

What is Business Contract Hire for EVs?

Business Contract Hire (BCH) is essentially car leasing for small companies. It's ideal for you if pay yourself through dividends. It's perfect for sole traders, limited companies, and partnerships. Our offer is a great way for small companies to make the switch to electric.

How does Business Contract Hire work?

You pick your EV, choose your mileage and length of the contract, choose your payment plan and get a background check from us - and you should be ready to roll!

Are there any BCH handling fees, or extra fees for setup or admin?

No, unlike other BCH providers we don't charge extra for this.

Are EV chargers included with Business Contract Hire?

No, you'll need to pay for an EV charger separately. But you can get your charger installed by expert Octopus engineers, check out our chargers here.

Is maintenance included with BCH?

Our BCH contract comes with an optional maintenance package that you can add to the lease at an additional cost.

Why would I choose BCH over a salary sacrifice?

It depends on your circumstances, but if you have a small workforce or don't pay your team a salary, as a business, you can make bigger tax savings by choosing BCH. Including 100% of VAT for maintenance costs and 50% of VAT for your electric vehicle lease.

How do I get my first 4,000 miles of charge for free?

To get the 4,000 free miles you'll need to switch to Intelligent Octopus, the energy tariff for EV drivers. It's especially designed for EV charging and keeping costs low. Find out more here.

Can you take over a BCH order I've already placed with a dealer?

It depends, usually, yes! We can take over all Tesla and some Polestar orders (give the team a ring to find if this is covered), and can usually take over orders from other dealers, but these are on a case-by-case basis.

How do I get Business Contract Hire?

Book a call with one of our BCH experts who can run through your options in detail.

What is the difference between BCH and PCH?

BCH contracts are only available for businesses and usually at a lower monthly cost, but work in a similar way to PCH with a contract for a fixed period of time, monthly payments then return the EV at the end of the agreement.

At Octopus Electric Vehicles, prices for BCH do not include the VAT and PCH includes things like maintenance and the charger, making PCH the payment look higher.

How does BCH work if you're a director and pay yourself in dividends?

It works exactly the same as if you were running a business with employees. Office or garden shed, BCH is for all sizes of businesses. The business essentially pays for the car, not the individual.

How does BiK (Benefit in Kind) work if I'm a Director and pay myself in dividends?

You'll pay 2% BiK rate (or company car tax) on any EV Business Contract Hire agreement, no matter how you get paid. BiK is set at 2% until April 2025. From then, it'll raise by 1% each year until 2028. With BCH you'll pay this on the portion of the company's tax rather than your salary, as you would with a salary sacrifice scheme.

Is a hard credit check done on the customer for BCH?

No hard credit check will be done on you, the customer, but a soft credit check will be done on the directors of the company. A hard credit check is done on the company or business as this is a business contract hire and is based on info held by credit safe (a credit referencing agency).

Who owns the vehicle under a Business Contract Hire lease?

The finance provider remains the owner of the vehicle during the lease. Your business leases it but isn't the legal owner.

Is Business Contract Hire tax deductible?

Yes, to an extent. Assuming you're VAT registered, you can claim 50% off VAT on the contract hire, 100% off VAT on maintenance and 100% off VAT on commercial vehicles.