Personal vs Business EV Leasing: Key Differences
If you’re comparing electric car lease deals, one of the first decisions is whether you’re leasing as an individual (PCH) or through a business (BCH). This guide explains the key differences in plain English—without sales talk.
Personal Contract Hire (PCH)
PCH is designed for private individuals. You pay an initial rental and fixed monthly rentals for an agreed term and mileage, then return the car at the end. There’s typically no option or obligation to buy the vehicle under a standard PCH contract.
Learn more on our Personal EV leasing (PCH) page.
Business Contract Hire (BCH)
BCH is commonly used by limited companies and organisations, and often by sole traders (subject to provider criteria). Contract structure is similar, but VAT treatment and company car rules can differ depending on use.
Learn more on our Business EV leasing (BCH) page.
Quick comparison
| Feature | PCH (Personal) | BCH (Business) |
|---|---|---|
| Who signs? | Individual | Company / organisation / sometimes sole trader |
| Typical use | Private driving | Company cars / fleet / mixed use |
| Tax/VAT | No VAT reclaim for most individuals | VAT/BIK can apply depending on use and rules |
| End of contract | Return vehicle | Return vehicle |
How to choose
- Lease personally if the car is mainly for private use and you’re comparing personal budgets.
- Lease through a business if the vehicle is a company car/fleet and you need business invoicing.
Note: This information is for general guidance only and does not constitute tax or financial advice. Tax rules and eligibility can vary. Always confirm lease terms with the provider and consult a qualified adviser for business-specific tax questions.