Cut costs, not quality: Top company cars that dodge premium tax

What are the recent VED changes?

First things first: thinking about leasing a car for your business? Time to navigate what the VED changes mean for your next car lease.

Buckle up – class is in session.

From April 1, 2025:

• All newly registered electric cars will pay a first-year VED rate of £10
• From the second year onwards, they’ll pay the standard rate of £195 annually
• Models priced over £40,000 (including options) would be subject to the expensive car supplement (or ‘premium car tax’): £425 per year for years two to six

From April 1, 2026:

• Previous threshold increased to models priced over £50,000 (including options) will now be subject to the expensive car supplement (or ‘premium car tax’): £425 per year for years two to six

If you do the maths (don’t worry if numbers aren’t your strong suit - we’ve done it for you), EVs costing more than £50k will face an additional £620 per year in road tax from year two, for a total of £1,870 over the first four years.

And that’s not the end of the road.

BiK tax rates for electric models are also increasing by 1% each year from 2025 until 2028, to a total of 5%. But fear not, this is still way below what you’d pay in BiK for a petrol or diesel car.

Leasing remains a financially savvy way to drive a brand-new EV, too.

Not only do you benefit from the latest tech and safest cars, but your road tax will be factored into the cost of your lease. However, it’s always worth having a chat with your leasing consultant just to clarify all your costs – they’re always up to speed with the most current information.

If the VED increases again during the term of your lease, your monthly payment might go up. But you’ll be kept informed of any changes before they happen.

Five EVs under £50k that avoid the expensive car supplement

The good news? There are plenty of electric cars that won’t trigger the Expensive Car Supplement.

Here are five of our favourite EVs that slip under that magic number – and they’re all available on business lease deals.

*Please note that some of the features are dependent on what trim you select.

Tesla Model 3

From £39,990

Possibly the ultimate business car you can lease, this sleek saloon offers up to 466 miles of range (WLTP Comb) and comes absolutely packed with tech.

Tesla is renowned for its high-tech cars, but here are just a few highlights:

• Upgraded microphones: crystal-clear hands-free calls
• Wireless charging: charge two phones simultaneously
• Tesla app: control vehicle, charging, and cabin pre-conditioning remotely
• Premium sound system: up to 15 speakers, dual subwoofers and amplifiers
• 360-degree acoustic glass: quieter cabin for conference calls

The ultimate business car? Quite possibly. But what about when you're off the clock?

Your dog gets VIP treatment too. Dog Mode maintains a comfortable cabin temperature and displays a message on screen to let passers-by know you're coming back.

It's also seriously safe, packed with tech and thoughtful design:

• Tesla Vision: eight cameras, 360-degree visibility up to 250 metres
• Autopilot: assists with steering, acceleration and braking under supervision
• Automatic Emergency Braking, Forward Collision Warning, Blind Spot Collision Warning, Lane Departure Avoidance, Advanced airbags

Plus, rapid charging adds up to 175 miles in just 15 minutes.

Warranties cover both the car and battery:

• Car: 4 years/60,000 miles
• Battery: 8 years/120,000 miles

Only the Performance all-wheel drive model (£59,990) exceeds the £50k threshold.

Check out our Tesla Model 3 business lease deals.

BYD SEAL

From £45,705

The BYD SEAL is turning heads as a genuine Tesla Model 3 rival, so of course, we had to include it here.

Built by a company with 30 years of battery expertise, this iF Design Award-winning saloon combines ocean-inspired aesthetics with serious performance credentials.

BYD is renowned for its battery technology and ocean-inspired design, but here are just a few tech highlights:

• 15.6-inch rotating touchscreen
• 12-speaker Dynaudio® sound system
• Wireless charging (60W)
• "Hi, BYD" voice control
• Panoramic glass roof

Integrated sport seats are electrically adjustable with heating. With 400 litres of boot space plus a 53-litre front trunk, there's plenty of room for everything from the weekly shop to weekend trips.

And with up to 354 miles of range (WLTP Comb), you’ve got enough power to get to where you need to go.

Safety credentials are impressive:

• Adaptive Cruise Control and Intelligent Cruise Control
• Automatic Emergency Braking
• Lane Departure Warning, Lane Keep Assist, and Blind Spot Detection
• Traffic Sign Recognition
• Seven airbags

Plus, DC rapid charging gets you from 30-80% in just 26 minutes – enough time for a quick coffee break and stroll.

BYD doesn't mess about with warranties either, even covering bodywork too:

• Car: six years, or 93,750 miles
• Drive unit: eight years, or 93,750 miles
• Battery: eight years, or 155,350 miles
• Bodywork anti-corrosion: 12 years, unlimited mileage

Both trims (£45,705 and £48,705) sit comfortably under the £50k threshold, making the BYD SEAL a smart choice that keeps you well within budget.

We'd say it's a fighting contender to take the Tesla Model 3 off the podium for ultimate electric business saloon.

Check out our BYD SEAL business lease deals.

Renault 5

From £21,495

Coming in way below the £50k threshold, we have the new Renault 5 – and it's just been crowned the 2025 Car of the Year.

This retro-futuristic hatchback takes the iconic 1970s city car and electrifies it for the modern age, complete with cheeky headlights and a bonnet grille that lights up as your battery charges. It's emotional design done right.

And with up to 252 miles of range (WLTP Comb), range anxiety is a thing of the past.

Renault's packed some genuinely clever tech into this compact package:

• 10.1-inch rotatable touchscreen
• Google built-in with 50+ apps – from Techno+ upwards
• "Hey Reno" AI avatar
• Apple CarPlay and Android Auto
• Up to nine-speaker Harman Kardon sound system

Perfect for zipping around town, but there's room for life too. Five seats, five doors, and up to 326 litres of boot space mean there's plenty of room. You can choose from properly fun colours like Pop Yellow! and Pop Green! too.

And safety? The Renault 5's got you covered:

• Active Driver Assist: adaptive cruise control with lane centring
• Automatic Emergency Braking
• Lane Departure Warning, Lane Keep Assist, Driver Attention Alert, and Blind Spot Warning

Plus, DC rapid charging gets you from 15-80% in around 30 minutes.

Warranty-wise, Renault offers:

• Car: three years, or 100,000 miles
• Battery: eight years, or 100,000 miles
• Bodywork anti-corrosion: 12 years, unlimited mileage

Starting from just £21,495 for the Evolution trim, every single Renault 5 trim sits well below the £50k threshold.

Check out our Renault 5 business lease deals.

MG4

From £27,245

The MG4 EV remains excellent value for money. It's cheaper than many combustion equivalents, yet still offers competitive range, decent charging speed, spacious rear seats, and plenty of equipment.

And it's available in Volcano Orange – bright and cheerful, a little reminiscent of Tigger. The MG4 is really built of wonderful things, much like our stripy hero.

And much like Tigger, the MG4 has lots of energy. Up to 323 miles (WLTP Comb) of energy, to be precise.

MG has packed plenty of clever tech into this family-friendly hatchback:

• 10.25-inch colour touchscreen – Apple CarPlay and Android Auto
• MG iSMART app – check charge levels, pre-set cabin climate, locate your vehicle
• 360° camera, Wireless phone charging, and Vehicle-to-Load (V2L)

Generous head and leg room means even taller passengers travel comfortably, with up to 1,177 litres of boot space with rear seats folded.

MG Pilot brings peace of mind with comprehensive driver assistance:

• Adaptive Cruise Control
• Active Emergency Braking
• Lane Keep Assist and Traffic Jam Assist
• Blind Spot Detection and Rear Cross Traffic Alert

Plus, rapid charging gets you from 10-80% in just 30 minutes.

MG doesn't mess about with warranties either:

• Vehicle: seven years, or 80,000 miles
• Battery: eight years

When you consider the MG4's overall package, it remains a superb all-round option. Every trim sits comfortably under the £50k threshold, it's a steal.

Check out our MG4 business lease deals.

Volvo EX30

From £33,060

The compact-but-premium Volvo EX30 brings Scandinavian minimalism and Volvo's renowned safety credentials to the small electric SUV segment.

Both the Plus and Ultra trim levels come in under £40,000, though the top-spec Ultra will come in over the £50k threshold.

The Plus trim boasts a WLTP Comb range of 209 miles for the Single Motor option, or 295 miles (WLTP Comb) for the Extended Range. And with fast charging capabilities, you'll be back on the road in under half an hour.

The Google-based infotainment system is one of the best on the market, along with other helpful tech too:

• 12.3-inch touchscreen with Google Maps navigation
• Voice control with Google Assistant
• Unlimited mobile data for four years
• Apple CarPlay
• Harman Kardon premium sound (1,040W output)

The sustainable interior boasts plenty of recycled materials including textile and Nordico upholstery options, heated front seats, and a heated steering wheel.

Safety? This is a Volvo, so naturally it's loaded:

• Pilot Assist with adaptive cruise control
• Blind Spot Information System
• Collision avoidance, Cross Traffic Alert, and Forward Collision Warning
• Lane Keeping Aid

The EX30 packs Volvo's premium feel and cutting-edge tech into a compact package. And the warranty is pretty good too:

• Car: three years, or 100,000 km
• Battery: eight years, or 160,000 km

We're big Volvo fans, and the EX30 is no exception.

Check out our Volvo EX30 business lease deals.

Get into gear with a business lease

Did you know that leasing an electric car for your business comes with plenty of perks?

If you opt for a sub-£50k model, you’ll not only avoid the expensive car supplement, but you’ll also:

• Not have to worry about depreciation, or the admin headache of reselling
• Easily be able to budget with fixed monthly payments
• Have the potential to reclaim VAT
• Benefit from the latest tech and safety features with each new lease
• Have the option to include a maintenance package for hassle-free motoring

Whether you’re looking for your first electric car, or you’re upgrading from an older model, opting for an electric lease under £50,000 could save you some serious cash.