Plug-in Hybrid Salary Sacrifice
A plug-in hybrid (PHEV) on salary sacrifice suits employees who want to drive electrically for most trips, while keeping a petrol or diesel engine in reserve for longer journeys — with lower Benefit-in-Kind tax than an equivalent combustion car, though savings are generally lower than a fully electric vehicle.
Plug-in Hybrid Salary Sacrifice — FAQs
How do plug-in hybrid savings compare with fully electric?
Plug-in hybrids still benefit from lower Benefit-in-Kind rates than petrol or diesel cars, but the rate is higher than for a fully electric vehicle, so the tax saving is generally smaller.
Why choose a plug-in hybrid over fully electric?
Some employees prefer the reassurance of a petrol or diesel engine for longer trips or where charging access is limited, while still driving electrically for most day-to-day journeys.
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