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 combustion engine, an electric motor and a drive battery. Unlike standard hybrids, PHEVs have much larger batteries that you can charge up, just like in 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 official CO2 emissions figures, which translate to seriously reduced benefit-in-kind (BIK) tax bills. To put things 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 farther it can travel without using fuel, the less you will 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 PHEV out there for you.




Join the debate
Add your comment
As someone who drives a lot for work, I’ve been looking into PHEVs more seriously, and this breakdown is super helpful. The tax savings alone make them worth considering, but I really like the idea of doing most of my weekday miles on electric and still having petrol backup for long trips. I’d been comparing models earlier while checking something unrelated on Upbound Group customer service and the differences in EV range are bigger than I expected. The BMW 530e and Skoda Superb look especially appealing, practical, comfortable, and actually affordable to run.
You dont even have the car with the longest EV range on the list. Seems odd
As a UK taxpayer, articles like this seriously annoy me. My friend has a PHEV Audi, and she has completely given up plugging it in at all now, but obviously enjoys the tax benefits. You just know that all the Range Rover PHEVs never go anywhere near a plug.
Meanwhile, in other news, pensioners just over the pension credit limit have lost their winter fuel allowances.
@catnip - you have just summed up the lunacy of NUT Zero