If you’re considering a salary sacrifice EV, you’ve probably heard the slightly panicked whispers: company car tax is going up in April 2027. The Benefit in Kind (BIK) rate for electric cars, currently sitting at a very comfortable 2% for 2024/25, will rise to 3% in 2025/26, 4% in 2026/27, then jump to 5% in … Read more
If you’ve been eyeing up a salary sacrifice EV deal, you’ve probably heard that company car tax rates are going up in April 2027. The rate for electric cars will increase from 5% to 6% of the vehicle’s list price, which sounds like it could be significant. But how much will it actually cost you, … Read more
The benefit in kind (BIK) rate for electric company cars is set to rise from 2% to 3% in April 2027. If you’re considering an EV salary sacrifice scheme, that leaves you with a question: sign up now to lock in the lower rate, or wait eight months for potentially better lease deals and newer … Read more
If you’re signing up for a salary sacrifice electric car in 2025 or 2026, there’s a very good chance your contract will straddle April 2028. That’s when the current ultra-low 2% Benefit-in-Kind (BIK) rate for pure electric cars is guaranteed only until, with the rate widely expected to rise to 3% or 4% from the … Read more
From April 2026, electric vehicles will start paying Vehicle Excise Duty (road tax) for the first time. If you’re driving an EV through a salary sacrifice scheme, or thinking about joining one, you’re probably wondering whether this means your monthly payments are about to jump. The short answer is: it depends on your scheme provider, … Read more
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
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
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
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
From April 2025, electric cars lost their exemption from Vehicle Excise Duty (VED, or road tax). If you’re considering salary sacrifice for an EV in 2026 or beyond, you’ll now pay £10 for the first year, then £195 annually from year two onwards. For cars with a list price over £40,000, there’s an additional £425 … Read more