Salary sacrifice and business car leasing – the best hybrids to lease with low BIK

The popularity of salary sacrifice and business car leasing has continued to grow in recent years. Customers continue to utilise schemes like this to future-proof against rising fuel, car maintenance and disposal costs. This allows drivers to make the move to all-electric or plug-in hybrid alternatives.

Despite a huge advancement in the EV charging network, not everyone looking for a new company car will be prepared to go fully electric. A plug-in hybrid electric (PHEV) might just be the solution, blending the latest EV technology with a more traditional combustion engine.

This offers an almost seamless blend of economy, range and comfort. There’s no range anxiety on longer motorway journeys thanks to the traditional engine, with the added benefit of an all-electric mode for shorter journeys.

There are tax implications to consider before opting into a salary sacrifice or company car scheme, which will change depending on the type of business lease vehicle you choose. However, there are a number of PHEV’s that benefit from the lowest benefit-in-kind tax rates possible.

What is Benefit In Kind Tax?

Company cars are seen as company perk or non-cash benefit, and therefore have an equivalent cash value which is taxable. You may be familiar with this already, if, for example, you have private medical insurance through your employer. This is known as Benefit-in-Kind Tax (BIK) whereby the company car is taxed as a benefit to the individual.

The Benefit-in-Kind Tax applies to all types of company cars. The BIK rate is dependent on the value of the vehicle, its emissions and the drivers’ tax banding. Ultra-low emission cars benefit from a lower tax rate, which is a move to encourage more people to consider driving an electric vehicle or plug-in hybrid.

Hybrids with Lowest BIK Rates

There are many benefits to choosing a PHEV company car. Models that produce ultra-low emissions can benefit from a lower Benefit-in-Kind Tax, but the emissions produced must be below 50g CO2 per km to qualify for the lower rates. If a hybrid produces more than this figure, it will likely have the same BIK rate as a standard petrol or diesel vehicle.

One of the lowest rates you can get for a qualifying plug-in hybrid is around 5%. PHEVs with a 5% BIK rate normally have an estimated full-electric range of 70 – 129 miles.

Range Rover Sport PHEV

The Range Rover Sport’s balance of performance and comfort have made it an instant hit with company car drivers. Combine this with a plug-in hybrid (PHEV) powertrain and Range Rover Sport PHEV business leasing makes a lot of sense.

This PHEV produces 18g/km worth of CO2 and has a reported 75-mile all-electric range. This results in a 5% Benefit-in-Kind Tax. Land Rover’s combination of petrol engine and electric motor has proven to be an efficient pairing, allowing it to choose between the two powertrains almost seamlessly.

Mercedes-Benz GLC 300E

The Mercedes-Benz GLC is one of the brand’s best-selling models, offering unrivalled comfort and a premium driving experience. It’s ride and an interior are filled the latest tech, with state-of-the-art safety features offering peace of mind too.

If you choose the GLC 300e, you’ll get a petrol hybrid powertrain which offers one of the most competitive all-electric ranges on the PHEV market. It can achieve a claimed 80 miles of electric range from a large 31kWh battery.

What’s more, its CO2 emissions are just 12g/km, meaning it falls into it in the 5% Benefit-in-Kind Tax bracket. For company car drivers then, the GLC PHEV is a great option that offers class-leading economy, refinement and a low BIK rate.

Lexus NX 450H+

If you’re looking for a premium SUV that benefits from fresh styling inside and out, the Lexus NX is a first-choice option. The Lexus NX is an impressive PHEV produced by a manufacturer renowned for their hybrid innovation and attention to detail.

It is powered by an efficient 2.5-litre turbo engine and an electric battery, which manage an estimated 56.5mpg on a combined cycle. There’s also a 40-mile all-electric range, helping the Lexus NX fall into the 8% BIK tax bracket. This SUV really stands out in the hybrid segment as result, showing confidence in both its design and hybrid engineering.

BMW 3 Series 330e

The BMW 3 Series 330e is a popular choice for business customers here at Synergy. This stylish plug-in hybrid pairs an electric motor and a 2.0 litre petrol engine. It’s a smart and engaging drive which benefits from a 41-mile all-electric range and a 0 to 62mph of 5.9 seconds.

All this means the 330e falls into the 12% BIK tax bracket, making it an affordable choice. This executive saloon also comes with BMW’s Intelligent Personal Assistant and iDrive system.

Kia Sportage PHEV

The Kia Sportage might be a popular family SUV, but the efficient hybrid variant makes it a versatile offering for other customers too. It has consistently been one of the best-selling cars in the UK over the past two years, and for good reason.

This plug-in hybrid variant uses a 1.6-litre petrol engine and a 90bhp electric motor. The 13.8kWh battery has a claimed 43-mile WLTP electric range, meaning it falls into it in the 8% Benefit-in-Kind Tax bracket. Choose a Sportage PHEV and benefit from a dual-screen display, an electronic stability system with downhill brake control and premium interior.

Volvo XC60 PHEV

Volvo produces some of the most advanced SUVs on the market, which includes the stylish and premium Volvo XC60. It’s available to lease with a plug-in hybrid (PHEV) powertrain and a reported 50-mile all-electric range, helping it achieve an 8% Benefit-in-Kind Tax rate.

Customers also get the choice of all-electric, hybrid, all-wheel drive, and off-road modes, meaning the XC60 is a versatile offering that can meet a variety of different driving needs.

At Synergy we have a range of electric and hybrid cars to choose from. We can talk you through your options and find the best company car lease for you through our salary sacrifice scheme. Our team will then provide a personalised, bespoke quote built around your requirements.

Contact our friendly and professional team today for more information on how we can help your business and reward your staff today.