If you’re considering a salary sacrifice EV, you’ve probably heard that company car tax is going up in April 2027. The benefit-in-kind (BiK) rate for electric cars rises from 2% to 3%, which sounds small until you realise it means a 50% increase in your tax bill. The question everyone’s asking: should you rush into … Read more
From 1 June 2026, electric vehicle owners will start paying Vehicle Excise Duty (VED, often called road tax or car tax) for the first time in the UK. If you own or are considering an EV, here’s exactly what you’ll pay and how it compares to petrol and diesel equivalents. The New Rates: Three Categories … Read more
If you own an electric car registered between April 2017 and March 2025, you’re now receiving your first Vehicle Excise Duty (VED) bill. That £195 annual charge, which kicked in from 1 April 2025, marks the end of EVs’ road tax exemption. And if your car cost more than £40,000 when new, you’re looking at … Read more
Getting made redundant is stressful enough without worrying about whether you’re about to lose your company car or face a surprise tax bill. If you’ve got an EV on salary sacrifice, here’s what actually happens to the car, the payments, and your tax position when you lose your job. The three main outcomes When your … Read more
Electric vehicles lost their free pass on road tax in April 2026. If you’re driving an EV registered after that date, you’ll now pay £190 per year in Vehicle Excise Duty (VED, the tax formerly known as road tax). That’s about £16 per month, which might sound modest, but it’s worth understanding exactly what this … Read more
Electric cars started paying Vehicle Excise Duty (VED, or road tax) in April 2025, ending years of exemption. A year on, we’ve broken down what this actually costs EV drivers each month, and whether electric cars still beat petrol and diesel on overall running costs. What EVs now pay in road tax From April 2025, … Read more
If you’re coming to the end of a salary sacrifice EV agreement you signed in 2023 or 2024, you’ve probably noticed the tax landscape has shifted. The ultra-low 2% Benefit in Kind (BIK) rate that made electric company cars such an obvious financial win ended in April 2025. It’s now 3% for the 2025/26 tax … Read more
From 1st May 2026, electric cars registered from April 2025 onwards will start paying Vehicle Excise Duty for the first time. If you bought your EV in the past year, you’ve got about four weeks before your free ride ends. Here’s exactly what you’ll pay, and whether it actually changes the case for going electric. … Read more
If you bought an electric car between April 2020 and now with a list price over £40,000, you’ve been paying an extra £410 per year in road tax (officially called Vehicle Excise Duty, or VED) for up to five years. Now that the rules are changing from April 2025, with EVs facing different VED treatment, … Read more
The company car tax rate for pure electric vehicles jumped from 2% to 3% in April 2026, a 50% increase that’s sparked concern among anyone considering salary sacrifice EV schemes. If you’ve been weighing up whether to sign up, you’re probably wondering whether the numbers still make sense. Short answer: yes, they do. The increase … Read more