EV vs PHEV
Exploring the difference in salary sacrifice and
Benefit-in-Kind tax rates
Electric vehicles (EV) and plug-in hybrid electric vehicles (PHEV) have become increasingly popular in recent years as more people switch to greener and more fuel-efficient modes of transport. But how do EV and PHEV compare when it comes to salary sacrifice and Benefit-in-Kind (BiK) tax rates? And what should you consider when choosing between an EV and a PHEV?
On the surface, the difference between EV and PHEV is quite straightforward. An EV is powered entirely by an electric battery and doesn’t require petrol or diesel. In contrast, a PHEV is a hybrid between a plug-in electric vehicle and a traditional internal combustion engine (ICE) vehicle, making use of both electric power and petrol or diesel. PHEVs will typically run on electricity until the battery is depleted. Once that happens, rather than having to stop and recharge mid-journey, the vehicle will automatically switch over to the internal combustion engine for the source of power.