Salary sacrifice is no longer the cheapest way to drive a hybrid – here’s why
Apr 23, 2025
1 min read
You’ve probably heard the government’s recent announcement: while while the sale of petrol and diesel cars will stop in 2030, hybrids can still still be sold until 2035. But if you’re considering offering them through salary sacrifice, we'd suggest you think again.
The time for hybrids on salary sacrifice is over.
Hybrids once had a great tax advantage through salary sacrifice. But with rising Benefit-in-Kind (BiK) rates, even the best hybrids are losing their appeal. Employees would be better off owning a hybrid privately - for example, via personal contract hire (PCH). And with new CO2 testing coming in 2025, costs are set to rise even more.
Graph: Cupra Born selected as one of our most popular vehicles in Q1 ‘25 and has a directly comparable PHEV equivalent, the Cupra Leon
Hybrids vs. EVs: What makes more sense on salary sacrifice?
EVs are the smarter choice.
Long story short: EVs are the best long-term option for employers and employees. Here’s why:
Hybrids on salary sacrifice? Time to move on
EVs beat hybrids on tax—lower costs for employers and employees alike.
Electric is cheaper - simple as that
Go electric on salary sacrifice and save, up to £1,500 a year if you charge at home
EVs are cleaner, of course
EVs have no tailpipe emissions and only get cleaner as the UK grid gets greener.
Ready to make the switch?
