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If you are lucky enough to get a car from your employer, it's going to make a lot of financial sense for you to switch to electric. New tax rules mean that a 100% electric car will have very low benefit in kind tax and could save you thousands every year compared to a petrol or diesel. Even swapping to a plug-in hybrid, makes good financial sense. Here's what you need to know, along with our recommendations for the best electrified company cars you should be considering.

Nissan Leaf e plus

Going electric is less taxing

The words ‘benefit-in-kind’ sound warm and welcoming. But if you’re a company car driver these three little words will strike fear into your heart. Benefit-in-kind or BIK is the tax taken out of your pay packet every month if your employer gives you a car which you can also use for personal miles, like ferrying the family around at the weekend.

But we have some good news for you, if your car can travel for over 40 miles using pure electric range then you pay just 6% of the car's value per year in benefit-in-kind, compared to 12% for those that manage less than 30, whilst owning a diesel car means you'll take an even larger hit. Pure electric cars like the Nissan Leaf attract just 1% in the 2020/21 tax year and 2% in 2022 to 2025. Who say's there's no such thing as a free lunch!

Get the full lowdown on the BIK rules here.

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