Low benefit-in-kind rates and an engine to fall back on? These are the must-have PHEV company cars
If you’re a business driver – or a potential business driver – looking to get the most bang for your buck, a plug-in hybrid company car might just be perfect for you.
Plug-in hybrids, or PHEVs, potentially offer the best of both worlds. On one hand, you get some of the lower tax benefits that come with electric cars. On the other, you still have the reassurance of a traditional petrol or diesel engine for those longer journeys. No range anxiety, no stress. Just flexibility.
PHEVs combine three key elements: a regular internal combustion engine, an electric motor, and a rechargeable battery. Unlike standard hybrids, plug-in hybrids have much larger batteries that you can charge up just like a fully electric car.
This means you can drive purely on electric power for around 30-75 miles depending on the car. Then, when the battery runs out, the petrol or diesel engine takes over, so you’re never left stranded.
For company car drivers, the big win here is lower CO2 emissions, which translate to seriously reduced benefit-in-kind (BIK) tax bills. To put it into perspective, many traditional petrol or diesel cars are taxed at around 27% of their value. With a PHEV? You’re looking at anywhere between 6% and 15%, depending on the car’s electric-only range. The further it can travel without using fuel, the less you’ll pay in tax.
Whether you’re clocking up motorway miles as a sales rep or looking for something a bit more executive as a CEO, there’s a plug-in hybrid out there for you.
Source: Autocar
