Generally, there are company and personal tax efficiencies when buying an electric company car compared to a petrol/diesel car. However, you do need to consider the commercial aspects of your finance plans/funding of the company car in your company, as electric cars are usually more expensive.
Please refer below a comparison between electric and petrol/diesel cars to assist with your decision:
| Tax | Electric | Petrol/Diesel |
| Benefits In Kind | ||
| Car | 2% of list price based on CO2 emissions ( 2024/25) | 15% – 37% of list price based on CO2 emissions (2023-24) |
| Van | 0% if zero carbon emissions | A fixed £3,960 for 2024-25 |
| Employer-provided charging point | ||
| At work | There is no benefit for company cars. | N/A – A car fuel benefit applies of £27,800 for 2024-25 |
| At home | Taxable for employee cars | N/A – A car fuel benefit applies of £27,800 for 2024-25 |
| By charge card | Taxable for employee cars | N/A – A car fuel benefit applies of £27,800 for 2024-25 |
| Capital Allowances | ||
| 100% First-year allowances | Available for all electric vehicles | For vans or motorcycles only. |
| Vehicle charging points | 100% First year allowance on vehicle charging points | N/A |
| Allowances | ||
| Mileage reimbursements (for company cars) | 10p per mile for fully electric company cars | 10p – 23p per mile for company cars |
| Fuel allowances | 45p – 25p per mile allowance for employee’s own car | 45p – 25p per mile allowance for employee’s own car |