COMPANY CAR RUNNING COSTS
If you’re looking for the most cost-effective company car, there are several factors you should look at - benefit-in-kind taxation is an obvious one but you should also look into the cost of fuel and even the benefits to the business when making your decision. An e-HYBRID makes the perfect fleet car when taking all these factors into consideration.
If your decision is based solely on benefit-in-kind, an e-HYBRID could be the best fit for you, as they have much lower taxation rates.
| Petrol | Diesel | e-Hybrid | |||||||||||||||||
| P11D | £25,000 | £25,000 | £33,000 | ||||||||||||||||
| 0 emissions range | 40 | ||||||||||||||||||
| BiK 2021/22 tax year | 29% | 27% | 7% | ||||||||||||||||
| BiK 2022/23 tax year | 30% | 28% | 8% | ||||||||||||||||
| BiK 2023/24 tax year | 30% | 28% | 8% | ||||||||||||||||
| 20% | |||||||||||||||||||
| Total | £4,450 | £4,150 | £1,518 | ||||||||||||||||
| Average Monthly | £123.61 | £115.28 | £42.17 |
The business also pays less in Class 1a National Insurance Contributions with an e-HYBRID.
| Petrol | Diesel | e-Hybrid | ||||||||||||||||
| P11D | £25,000 | £25,000 | £33,000 | |||||||||||||||
| 0 emissions range | 40 | |||||||||||||||||
| BiK 2021/22 tax year | 29% | 27% | 7% | |||||||||||||||
| BiK 2022/23 tax year | 30% | 28% | 8% | |||||||||||||||
| BiK 2023/24 tax year | 30% | 28% | 8% | |||||||||||||||
| 13.80% | ||||||||||||||||||
| Total | £3,071 | £2,864 | £1,047 |
As an e-hybrid driver you can also make savings on the fuel. The RAC foundation research https://www.racfoundation.org/research/mobility/new-car-mileage discovered that the newest cars do an average of 10,377 miles a year in the first 3 years after they are registered. Using that mileage we can see that an e-HYBRID requires considerably less fuel to cover the same mileage.
| Petrol | Diesel | e-Hybrid | ||||||||||||||||
| MPG (combined) | 50.4 | 64.2 | 256.8 | |||||||||||||||
| Annual private mileage | 10,377 | 10,377 | 10,377 | |||||||||||||||
| Fuel price/litre (p) | 135.4 | 136.7 | 135.4 | |||||||||||||||
| Total fuel cost | £3,802 | £3,013 | £746 |
The table above is based on WLTP (World harmonised Light vehicle Test Procedure) combined mpg figures. However, with an annual mileage of 10,377 you could be travelling an average of 28 miles a day, which is well within the 40 mile zero-emissions range. Therefore those miles could cost even less if you charged your car regularly.
| Battery size kWh | 12.8 | ||||||||
| electricity cost p/kWh | 14.4 | ||||||||
| 0 emissions range | 40 | ||||||||
| Cost to fill | £1.84 | ||||||||
| Cost per mile | £0.05 | ||||||||
| Cost for 10377 miles | £478.17 |
It is important to make the most of the e-HYBRID technology and electric power by keeping your car charged. E-HYBRIDs have a higher kerb weight, therefore not recharging the battery and only using the petrol engine would be a false economy and would cause you to spend more on fuel than you need to.
| Petrol | e-Hybrid | |||||||||||||
| Kerb weight (kg) | 1362 | 1658 |
Use our company car tax calculator to see if an e-HYBRID would make a perfect addition to your fleet.
Calculate BIK and the amount of tax payable on SEAT business vehicles.
