Benefit-in-kind (BIK) are benefits or perks that an employee gets on top of their salary. Examples include company cars, cycle to work schemes, child vouchers or health care.
Employees have to pay a small tax on these benefits, called BIK tax. This value is set by HMRC and varies depending on the type of benefit. For electric vehicles BIK is currently set at 2% of the cash equivalent of the car (as opposed to 37% for some diesel cars). This will increase by 1% each year until the ‘27/’28 tax year.
Our quotes always take future BIK changes into account so you can be confident that there will be no unexpected price increases throughout the lease. Any tax estimates provided by The Electric Car Scheme after 5 April 2028 are estimates only, as the government have not yet announced the value.