Company car tax: why EVs still win in 2026/27
From April 2026, Benefit?in?Kind rates rise slightly – but electric models remain massively cheaper than petrol or diesel.
New HMRC tables confirm electric company cars will pay 4% BiK in 2026/27 (up from 2% in 2025). That’s still negligible compared to 25?37% for internal combustion. On a Tesla Model 3, the annual tax bill for a basic?rate taxpayer is around £270 – versus ~£2,500 for a comparable BMW 3 Series. Salary sacrifice schemes also stay attractive, with NIC savings for employers.
Meanwhile, the government extended the 0% VED (road tax) for EVs until 2026? Not exactly – from April 2025, EVs pay the lowest first?year rate (£0) but then move to the standard rate (£190) from year two. However, the expensive car supplement (extra £410) does not apply to EVs, unlike petrol models above £40k.


