There are two tables of rates because the official assessment for vehicle CO2 emissions changed from the old NEDC system to the more accurate WLTP set-up on 6 April 2020. If you're running a company car that was initially registered before that date, the rates in the second table will be relevant to you.
The two tables illustrate that plug-in hybrids with low emissions earn very low tax bandings, which is what makes them attractive as company cars– although the applicable rates aren't as favourable as those for pure-electric cars. This is because the plug-in hybrids currently on sale aren’t yet efficient enough to qualify for the very lowest rates , because none has a long-enough electric-only range. Nevertheless, they’re much cheaper on company car tax than a pure petrol or diesel equivalent.Let's work through an example to illustrate the point.should be your next company car. At the time of writing, the plug-in hybrid BMW 330e Touring M Sport has a P11d value of £46,360.
So over the full year, a 40% taxpayer running the 330e will pay out £2225.28. If they'd chosen the 320d instead the bill would be £5398.96. Choosing the hybrid saves £3173.68 in just one tax year. With the sums so heavily in hybrid's favour, it's no wonder that sales of plug-in hybrid electric vehicles are rising all the time.If you want super-low BiK bills, pure electric power is the way to go. But running an electric car demands certain compromises, such as having to plan your journey around charging opportunities, that hybrid petrol and diesel cars don’t place on you.
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