🚗 If you or your employees use a company car, the benefit-in-kind (BIK) rates that determine how much tax is payable changed again from 6 April 2026, and for many drivers, that means a higher tax bill.
The BIK rates for electric vehicles have continued their gradual upward creep. For 2026/27, the rate for zero-emission cars rises to 3%, up from 2% in 2025/26. While still significantly lower than petrol and diesel equivalents, it's a reminder that the tax advantages of EVs through company schemes are gradually being reduced over time.
For petrol and diesel company cars, rates have also increased across the board, with higher-emission vehicles seeing the most notable rises.
If you provide a company car, whether for yourself as a director or for your team, it's worth reviewing the current position. In some cases, a car allowance may now be more tax-efficient than a company car, and for electric vehicles, the calculation is increasingly nuanced depending on whether the car is owned outright, leased, or financed.
It's also worth checking your P11D submissions are accurate and filed on time. Errors and omissions in BIK reporting are a common trigger for HMRC enquiries.
Give your Client Manager a call and we can run through the numbers with you.
