Company Director BIK for Hybrid

[AndyC_123]

Morning all

I've always used our company commercial vehicles (business use only obviously...) so had no BIK to pay.

Business is going quite well so thinking about treating myself and from what I'm reading it will be quite tax efficient to get a hybrid - thinking along the lines of a 2 or 3 year business lease deal on a Range Rover/Range Rover Sport.

Does anyone else do this? Anything I'm missing/should I be looking at something else?

Probably can't go fully electric due to local infrastructure (oop north). Is there any BIK difference between diesel hybrid and petrol hybrid?

I've never leased a car before but if I was to get something like a RR there is no way I'd run it without warranty, so handing it back sounds ideal.

Costs (roughly) look like about £8,500 down and £1400/month. I'm presuming the business pays this? and I pay 5 or 6% BIK via my pay cheque?

Thank you

[RicksAlfas]

This is a good tool:
https://comcar.co.uk/companycar/tax/select/

Try different cars and see what's what.

[M1AGM]

RicksAlfas said:

This is a good tool:
https://comcar.co.uk/companycar/tax/select/

Try different cars and see what's what.

The table they have here:

https://comcar.co.uk/taxpages/carbenefitcharge/

Details the electric range to qualify for the lower BIK. The RR products do.

Noticed that from 2028 (April?) BiK shows a massive increase? Wasnt aware of that.

[Greatesthit12]

Did the same myself, the BIK is not bad at all. Also we drive 95% of trips on the battery only and it is so nice, silent and very smooth.

I test drove both and strongly recommend going for the 'full' Range Rover and not the Sport, it's a completely different car, and well worth any extra cost (which isn't normally that much of a difference for how much more car you're getting).

I spent a long time finding the best deal, and found going for a stock car at Rockar Canary Wharf worked very well. I did 1 month down with a 3 year contract on a HSE. Black outside, silver accents (didn't want a blacked out car), and beautiful white interior which I love. Very happy with it, wonderful car.

Here's the link for their stock that they sent me before.
https://bit.ly/4aIZ8bL


Once my contract is over - ends just before the BIK spike - then we will try to get the upcoming BEV model.

[russy01]

I do exactly this, but chose a BMW X5 50e. Nice large sporty suv - but didnt want the image/perception of a brand new range rover rocking up or sitting outside my premises.

X5 is 8% BIK, Sport is 5% BIK.... plus if you charge at work you save that cost too! My commute is all paid from company electric...

Be careful though as this benefit is coming to an end soon, along with the super expensive EV cars! Its either '28 or '29 and the BIK rate jumps up 10%...

Im just renewing my X5 for another 3 years until this happens - then after that it will probably be cheaper to PCP a big diesel SUV - as the BIK payments will be >£500pm.

[AndyC_123]

Thank you all, very insightful.

Newborn will be in the back so I'm expecting the rear of the "proper" range rover to be a bit wasted with a baby seat? Wife also prefers the sport apparently... I'll have a look at the BMW too, thank you.

I'm also thinking about contract hire rather than buying (first time I've ever done it) - cost over 3 years is about £42k which I'm thinking will be similar to the depreciation?

Am I right in thinking the company will be £1100 (ish) per month which will be tax deductible? And on top of that I have to pay the 6% BIK as part of my pay cheque? Accountant is on holiday.