What is the EV company car BIK rate roadmap from 2026 to 2030 in the UK?

Full answer

Why EV BIK Rates Matter The benefit-in-kind (BIK) percentage for a company car determines the taxable value of that perk. The taxable benefit equals the car's list price multiplied by the BIK percentage. Employees pay income tax on that figure; employers pay Class 1A NI (15% for 2026/27) on the same value. A low BIK rate makes EVs far cheaper to provide as a company car than equivalent petrol or diesel vehicles. Published BIK Rate Roadmap for Zero-Emission Cars The rates below are for cars with 0 g/km CO2 emissions (fully electric vehicles): - 2025/26: 3% - 2026/27: 4% - 2027/28: 5% - 2028/29: 7% - 2029/30: 9% These rates were confirmed in the Autumn Statement 2022 and remain government policy. They are legislated to provide certainty for fleet planning. Comparison With Petrol and Diesel Conventional petrol and diesel company cars attract BIK rates up to 37%, depending on CO2 emissions band and fuel type. Even by 2029/30, a zero-emission car at 9% is dramatically more tax-efficient than a 150 g/km petrol car at around 34%. Worked Example (2026/27) An electric company car with a GBP 45,000 list price in 2026/27: - BIK rate: 4% - Taxable benefit: GBP 1,800 - Employee income tax cost (40% taxpayer): GBP 720 per year - Employer Class 1A NI cost: GBP 270 per year The same calculation for a 130 g/km diesel at 31% would produce a GBP 13,950 taxable benefit. Plug-In Hybrids Plug-in hybrid vehicles attract higher BIK rates than pure EVs, based on their electric range. Cars with a range above 130 miles (WLTP) are treated similarly to zero-emission vehicles, while shorter-range hybrids have considerably higher percentages. From April 2028 Vehicles registered from April 2025 will use the WLTP CO2 figure exclusively (no NEDC figure), which may affect the band for some models. Employers planning fleet replacements should check the exact registered CO2 figure for each vehicle.

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