Spring 2025 brought in a wave of updates to fleet and company car policies – and while some changes were expected, others came as a bit of a surprise.
If you’re responsible for company vehicles or just curious about how the latest updates affect your car leasing options, we’ve broken it all down for you.
Here’s a quick look at what we thought might happen… and what actually changed:
1. Expensive Car Supplement (VED)
What we expected:
That the £40,000 threshold for the “expensive car supplement” would increase – especially for electric vehicles (EVs).
What actually happened:
It didn’t. The threshold stays at £40,000, and EVs costing more than that will still pay an additional £425 in road tax starting from year 2.
What it means:
EVs are still tax-efficient overall, but watch out for that price point. Choosing a model under the threshold can save you money over the lease term.
View our electric car leasing deals
2. Benefit-in-Kind (BIK) Tax
What we expected:
That EVs would continue to enjoy ultra-low BIK rates, and that petrol/diesel vehicles would see only small increases.
What actually happened:
- EV BIK rises to 3% in 2025
- It’ll increase by 1% each year until it hits 5% by 2027
- All vehicle types saw BIK increases, not just combustion engines
What it means:
EVs still offer the lowest BIK rates by far, especially when compared to petrol/diesel. But it’s smart to factor in annual increases if you’re leasing through a company.
3. Employer National Insurance Contributions (NIC)
What we expected:
No big changes.
What actually happened:
NIC is going up – from 13.8% to 15%.
But here’s the positive twist:
The Employment Allowance for small businesses is increasing from £5,000 to £10,500, softening the blow for some.
What it means:
For many employers, especially small businesses, EV salary sacrifice schemes are becoming an even more appealing way to offset rising NIC costs
4. Double Cab Pickups
What we expected:
They’d continue to be treated as vans for tax purposes.
What actually happened:
Not anymore – double cab pickups are now classified as company cars, meaning higher BIK and no longer eligible for capital allowance advantages.
What it means:
If you’re using pickups in your fleet, it might be time to rethink your vehicle choice – or your tax planning.
5.Van Benefit Charge
What we expected:
Minimal changes.
What actually happened:
The Van Benefit Charge has increased to £4,020, with an extra £769 for fuel used privately.
What it means:
If you provide vans for personal use, this adds up quickly. Many fleets are now exploring EV vans as a tax-efficient alternative.
6. Plug-in Grants
What we expected:
Continued government support for plug-in vehicles across the board.
What actually happened:
Grants are now limited to specific vehicle types only, including:
- Wheelchair-accessible vehicles
- Motorcycles and mopeds
- A small selection of vans
What it means:
There are no more grants for passenger EVs, so leasing becomes even more attractive as a way to spread the cost of a new electric vehicle.
7. London Congestion Charge
What we expected:
That EVs would remain exempt.
What actually happened:
The exemption will end in December 2025.
What it means:
If you’re leasing an EV for London driving, you’ll still benefit from the exemption for most of 2025 – but after that, plan for the extra cost.
Final Thoughts from the Team
Fleet policies are changing quickly- but leasing remains one of the smartest and most flexible ways to adapt. Whether you’re a business looking to lower costs or a driver exploring your EV options, we’ll help you navigate what’s new and find a lease that works for you.
For employers: Talk to us about salary sacrifice and fleet solutions
For drivers: Explore our best EV leasing deals today
👉 Get started with Car Leasing Made Simple
Need tailored advice for your business or team? Just get in touch – we’re always happy to help.