Are company car BIKs due a hike in 2028/28?

[FreeLitres]

I've had my current company car around 3 years so I was just scoping out what to get next. I was looking at a plug-in petrol hybrid Passat as a starting point. I looked at the figures on Comcar and... WHAT?

ax year to 5th April 2026/27 2027/28 2028/29
P11D value £49,275 £49,275 £49,275
Percentage charge 7% 8% 18%
Benefit in kind £3,449 £3,942 £8,870

Have the government mentioned a planned tax hike in 2028/29?

[miko382]

That is a massive jump in benefit-in-kind tax for that tax year. It definitely looks like a significant shift in government policy regarding plug-in hybrids, which is worth investigating further.

[JoshSm]

You can find all the planned rates easily enough, for EV/hybrid it looks something like

CO2	Electric Range	2022-25	2025/26	2026/27	2027/28	2028/29	2029/30
		%	%	%	%	%	%
0		2	3	4	5	7	9
1-50	>130	2	3	4	5	18	19
1-50	70-129	5	6	7	8	18	19
1-50	40-69	8	9	10	11	18	19
1-50	30-39	12	13	14	15	18	19
1-50	<30	14	15	16	17	18	19
51-54		15	16	17	18	19	20

[AB]

That's a horrible bump up! How can that be justified?

There's some real harsh hits coming for anyone driving a hybrid through their business and living in an expensive house if the 0.48% tax comes in.

[_Rodders_]

The whole thing has been a huge piss take for years.

The fact that if you had 2 young kids and earned £125k you could man-maths a top spec Taycan and be better off than if you walked everywhere.

Whether this is the right way of going about it I don't think so but it was such a ridiculous tax loophole they had to do something.

It's going to decimate SS I think in the next 5 years.

[Sheepshanks]

FreeLitres said:

I've had my current company car around 3 years so I was just scoping out what to get next. I was looking at a plug-in petrol hybrid Passat as a starting point. I looked at the figures on Comcar and... WHAT?

ax year to 5th April 2026/27 2027/28 2028/29
P11D value £49,275 £49,275 £49,275
Percentage charge 7% 8% 18%
Benefit in kind £3,449 £3,942 £8,870

Have the government mentioned a planned tax hike in 2028/29?

You'd better switch to an EV!

I think it got to 25% when I last had a company repmobile about 20yrs ago. We had to have fuel as well - no option to delete it even though many people were paying more in tax than the private fuel they were using.

I wonder is anyone still gets included fuel? Just Googled it and the current fuel charge is £29,200 - but with a 7% BIK rate that's way less than we were paying. Pretty horrible on a high BIK % car though.

[Sheepshanks]

_Rodders_ said:

Whether this is the right way of going about it I don't think so but it was such a ridiculous tax loophole they had to do something.

I know why it's been allowed to run but the outrageous thing about SS cars is the scheme isn't available to all taxpayers.

SS providers are also ripping off taxpayers by taking inflated gross amounts off people and soaking up the tax themselves when it should be going to pay for schools, hospitals, housing illegal immigrants etc.

[jimmytheone]

Sheepshanks said:

FreeLitres said:

I've had my current company car around 3 years so I was just scoping out what to get next. I was looking at a plug-in petrol hybrid Passat as a starting point. I looked at the figures on Comcar and... WHAT?

ax year to 5th April 2026/27 2027/28 2028/29
P11D value £49,275 £49,275 £49,275
Percentage charge 7% 8% 18%
Benefit in kind £3,449 £3,942 £8,870

Have the government mentioned a planned tax hike in 2028/29?

You'd better switch to an EV!

I think it got to 25% when I last had a company repmobile about 20yrs ago. We had to have fuel as well - no option to delete it even though many people were paying more in tax than the private fuel they were using.

I wonder is anyone still gets included fuel? Just Googled it and the current fuel charge is £29,200 - but with a 7% BIK rate that's way less than we were paying. Pretty horrible on a high BIK % car though.

We had a 2.0TDI SMAX around 2018/9 via the company my wife worked for - circumstances changed and suddenly she was facing a 37% BIK!
Luckily they offered an early return and we went EV

[FreeLitres]

I don't think an EV would work for me. I do travelling sales and support 4 days a week on the road with random long distance call outs.

That jump up in tax in 2 years time is absolutely crazy. Company Car Tax is an easy win for tax hikes as many people still think it's a luxury perk as part of a fancy job rather than the provision of an essential work tool.

[Quattr04.]

FreeLitres said:

I don't think an EV would work for me. I do travelling sales and support 4 days a week on the road with random long distance call outs.

That jump up in tax in 2 years time is absolutely crazy. Company Car Tax is an easy win for tax hikes as many people still think it's a luxury perk as part of a fancy job rather than the provision of an essential work tool.

Don’t underestimate EVs, I have a base spec model 3 and am I travelling engineer doing 30,000 miles a year, I live in south wales and travel to Bournemouth regularly, I can get there and back without publicly charging

In 6 months I’ve used a supercharger 3 times for a total of 23 mins

I have done 11,000 miles in my model 3 which has cost me less than 2p per mile and my company pay me 12p per mile, plus my BIk has fallen from £350 on a Audi a4 petrol to £37 a month

[Sheepshanks]

FreeLitres said:

That jump up in tax in 2 years time is absolutely crazy. Company Car Tax is an easy win for tax hikes as many people still think it's a luxury perk as part of a fancy job rather than the provision of an essential work tool.

A big hit for you is the completely insane P11d value of the Passat - I recall we moaned about ours in 2005 at around £25K for your typical rep mobile.

Against that your BIK % is half what we were being hit with,

So it ends up costing you the same as we were paying 20yrs ago.

Most of our staff opted out of company cars with a £600mth allowance. Some people bought exactly the same car (typical was BMW320d) and to do 90K over 3yrs it ended up costing them the same.