Reduced Driver Tax
Low emission vehicles can offer considerable tax savings to your drivers - at no cost to you
Driving an electric vehicle not only has a positive impact on the environment but can also dramatically reduce the drivers Benefit-in-Kind Tax (BIK) tax implications.
BIK is based upon both the value of the car and its emissions so those vehicles with lower CO2 will benefit from considerable tax savings.
Fully electric vehicles currently fall within the lowest BIK tax bracket for company car drivers, paying just 2% this tax year, rising to 3% in 2025/26.
Plugin Hybrid Electric Vehicles (PHEVs) fall into the next lowest BIK tax bracket for company car drivers, depending on the EV range capability.
Currently, PHEVs (those with less than 51g CO2 per km) with the greatest electric-only driving range fall within the 70-129 EV range and are taxed at only 5% BIK in the 2024/25 tax year, rising to 6% in 2025/26.
Even the poorest range sub 51 CO2 PHEVs are only taxed at 14% in 2024/25. Rising to just 1% in the next tax year.
For more information on tax bands and BIK, follow the link below to our dedicated tax website.
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