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Plug-in Hybrid Company Car Tax Changes

As Benefit-in-Kind (BIK) legislation evolves and more businesses consider how to reduce fleet emissions, understanding the impact on your organisation is more important than ever.

The Government's temporary BIK easement, in place from April 2026 to April 2028, could mean eligible Toyota Plug-in Hybrid vehicles continue to offer attractive tax advantages for both drivers and businesses. This page explains the latest changes and how Toyota can help you choose the right solution for your business.

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

With changing company car tax rates and increasing discussion around fleet electrification, it's understandable that many businesses and drivers have questions about Plug-in Hybrid vehicles.

Thanks to the Government's temporary BIK easement, eligible Toyota Plug-in Hybrid models may continue to be an attractive company car option. Whether you're reviewing your fleet strategy or selecting your next company car, our Business Team can help you understand the latest changes and explore how Plug-in Hybrids could support your transition to lower-emission driving.

Plug-in Hybrids remain a practical choice

With so much focus on fully electric vehicles and evolving BIK rates, it's easy to assume Plug-in Hybrids may no longer offer strong benefits for company car drivers. However, for some eligible vehicles, the position may be different from what many people expect.

For example, in 2026, the All-New Toyota RAV4 Plug-in Hybrid attracts a 7% BIK rate. For a 20% taxpayer, that’s around £50 per month in company car tax* and for a 40% taxpayer. could pay around £101 per month in company car tax**. This remains significantly lower than many comparable petrol vehicles.

For businesses and drivers looking to balance electric driving capability with the flexibility to travel longer distances, a Toyota Plug-in Hybrid continues to offer an efficient and practical solution.

Calculate your Company Car Tax

Looking for support with the latest BIK changes?

Understanding company car taxation can be complex, particularly as legislation continues to evolve. Our Business Team is here to help you understand the latest updates, explore the options available and identify the right solution for your organisation.

Whether you're reviewing your company car policy, planning future vehicle replacement cycles or considering electrified vehicles for the first time, we're here to help you make informed decisions with confidence.

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Supporting your electrification journey

Every business is different, which is why there is no single route to electrification.

While some organisations may be ready to move to fully electric vehicles, others may benefit from a more gradual transition. Plug-in Hybrid vehicles can help bridge that gap by allowing many daily journeys to be completed using electric power while retaining the flexibility of a petrol engine for longer trips.

As part of Toyota's multi-pathway approach to reducing emissions, Plug-in Hybrids continue to play an important role in helping businesses move towards a lower-emission future while maintaining operational flexibility.

Speak to us to find out how Toyota can support your fleet requirements.

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What do the latest changes mean for your business?

Watch our latest video to learn more about the recent Benefit-in-Kind changes, what they could mean for company car drivers and fleet decision-makers, and how Toyota is helping businesses navigate an evolving mobility landscape.

Whatever stage you're at on your electrification journey, our team can help you identify the right vehicles and solutions to support your business goals.

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*7% BIK rate based on All-New RAV4 Icon where CO2 is 30g/km and all-electric range is 85 miles. BIK liability for a 20% tax payer is  £50.95 (£611.45 annual)

**7% BIK rate based on All-New RAV4 Icon where CO2 is 30g/km and all-electric range is 85 miles. BIK liability for a 40% tax payer is  £101.91 (£1,222.90 annual)