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More than half of all company cars are now fully electric, according to the latest official Benefit in Kind (BiK) statistics published by HM Revenue & Customs (HMRC), underlining the continued role of company car tax policy in supporting the UK's transition to zero-emission transport.
The figures show that around 920,000 people received a company car during the 2024/25 tax year, with 465,000 (51%) driving a fully electric vehicle. This marks a significant increase from the previous year, when 40% of company cars were fully electric, and continues a trend that has seen electric company cars grow from just 50,000 in 2020/21.
The shift towards EVs is also reflected in emissions data. The average reported CO₂ emissions of company cars fell from 56g/km in 2023/24 to 41g/km in 2024/25, while vehicles emitting more than 165g/km now account for just 1% of the company car fleet, compared with 58% two decades ago.
The BVRLA will continue to make the case for maintaining predictable, low Benefit in Kind rates for company cars and will also continue to press Government to improve access to EVs by introducing a lower BiK rate for used fully electric vehicles.
