BUSINESS

Plug-in Hybrid Company Car Tax Changes

With evolving Benefit-in-Kind legislation and increasing discussion around fleet electrification, understanding the implications for your business has never been more important. The Government's temporary BIK easement, valid from April 2026 to April 2028, may mean eligible Lexus Plug-in Hybrid vehicles remain an attractive choice for both drivers and businesses. This page explains what the changes could mean and how Lexus can support your next decision.

ARE YOU HEARING MIXED MESSAGES ABOUT BENEFIT-IN-KIND AND PLUG-IN HYBRIDS?

Plug-In Hybrids remain a compelling company car option for many drivers, even as Benefit-in-Kind rates evolve, thanks to the Government's temporary BIK easement. Whether you're reviewing your fleet strategy or considering your next company car, our Fleet Team can provide expert guidance on the latest Benefit-in-Kind changes and help you explore the role eligible Lexus Plug-in Hybrid vehicles could play in your electrification journey.

Plug-in Hybrids deserve a closer look

With so much focus on fleet electrification and evolving Benefit-in-Kind rates, it is easy to assume Plug-in Hybrids may not be the right choice for company car drivers. However, the Government's temporary Benefit-in-Kind easement means that for some eligible vehicles, the position may be different than many drivers expect. For example, in 2026, the Lexus NX 450h+ Premium Plug-in Hybrid attracts a 10% BIK rate. For a 20% taxpayer, that’s around £86 a month in company car tax* and for a 40% taxpayer, that’s around £173 per month in company car tax** - significantly lower than many equivalent petrol vehicles.

For businesses and drivers seeking a balance between electrified driving, long-distance flexibility and everyday convenience, a Lexus Plug-in Hybrid can remain a compelling option.

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Looking for guidance on the latest BIK changes?

Understanding how Benefit-in-Kind legislation applies to your drivers and vehicles can be complex. Our Fleet Hub team is here to help you navigate the latest changes, understand the available options and identify the solution that best supports the needs of your business.

Whether you are reviewing your company car policy, planning your next vehicle replacement cycle or exploring electrification, we can help you make an informed decision.

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Supporting every stage of the transition

The journey towards electrification is different for every business and every driver. While some organisations are ready to move fully electric, others may benefit from a more gradual approach. Plug-in Hybrids offer the ability to complete many everyday journeys using electric power while maintaining the reassurance of a petrol engine for longer trips.

It is one of the reasons many businesses continue to see Plug-in Hybrids as an important part of their wider mobility strategy. Speak to us to understand how we can support your fleet needs.

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What the latest changes mean for you and your business

In our latest film, we explain what the changes could mean for drivers and fleet decision-makers, and why we're committed to helping customers navigate an increasingly complex mobility landscape.

Whatever stage you're at in your electrification journey, as your trusted partners, we're here to help you find the best solution for your business and drivers.

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*10% BIK rate based on Lexus NX 450h+ Premium where CO2 is 65g/km and all-electric range is 39 miles. BIK liability for a 20% tax payer is £86.51 (£1,038.10 annual). The 10% BIK rate is based on the current PHEV Easement, which treats eligible vehicles as having a nominal CO2 figure of 1g/km for company car tax purposes.

**10% BIK rate based on Lexus NX 450h+ Premium where CO2 is 65g/km and all-electric range is 39 miles. BIK liability for a 40% tax payer is £173.02 (£2,076.20 annual). The 10% BIK rate is based on the current PHEV Easement, which treats eligible vehicles as having a nominal CO2 figure of 1g/km for company car tax purposes.