Policy paper

Benefits in kind: easement for plug-in hybrid electric vehicles 

This tax impact and information note is about an easement for plug-in hybrid electric vehicles effective retrospectively from 1 January 2025 to 5 April 2028.

• From: HM Revenue & Customs
• Published: 26 November 2025

Documents

Plug-in hybrid electric vehicles — benefits in kind easement

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This measure is a benefit in kind easement for:

• employers who provide company cars which are plug-in hybrid electric vehicles (PHEVs) to their employees
• employees who are provided company cars that are PHEVs by their employers

This change will be effective from 1 January 2025 to 5 April 2028. Transitional arrangements will apply until the earlier of either:

• a change or renewal of the arrangement
• 5 April 2031

Published 26 November 2025