Everything you need to know about hybrid company car tax

What incentives are available for businesses to use hybrids?

With strong incentives and no range anxiety, hybrids (particularly plug-ins) have been a popular first step towards electrification for company car drivers. However, they can also benefit fleet operators. 

Employers pay Class 1A National Insurance Contributions (NICs) for providing workplace perks. For cars, this is a flat rate of 13.8% (rising to 15.05% in April 2022) of the vehicle’s taxable value, which means it’s just as heavily CO2-weighted as Benefit-in-Kind for drivers. Some examples are shown below. 


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