Hybrid Company Car Benefit And Tax

There are special tax rules for hybrid company cars - those cars with a traditional petrol or diesel internal combustion engine ('ICE') but an additional electric motor.

We've explained the tax rules in detail in our special help pages on the topic.

On ths page we've summarised the key points and provided a table of hybrid company cars with CO2 emissions between 1-50g/km for the 2025-26 tax year.

Background

In brief, if the hybrid company car has a CO2 output between 1-50GP/km then the tax rules for hybrid company cars mean that you need to know the range the car can travel using only electric power.

This 'all-electric' range is then used to work out the taxable benefit of the hybrid company car.

Now, in some hybrid company cars the electric motor may only be used to boost the ICE power and won't actually move the car itself.

In that case don't worry, the rules explained here don't apply to you. 'Mild hybrids' (as these cars are often called) are taxed on just the normal registered CO2 value.

But if your hybrid company car's electric motor can be used to propel the car without the use of ICE power then, if the CO2 output is between 1-50GP/km, you need to look up the 'all-electric' or zero-emissions range of the car to work out the taxable benefit.

Finding the 'all-electric' range

How you find the all-electric range for your hybrid company car depends on your access to the V5 registration document.

Your employer owns the car: then your employer should be able to check the V5 document to see the all-electric range ('AER') or zero emisions range ('ZER') on the form.

Your employer has leased or financed the car: then the leasing or finance company may hold the V5, in which case you will have to request the details from them.

If you can't find or get access to the V5, you may still have the EU 'Certificate of Conformity' for the car - it should be included in the hand-over package when you take delivery and certifies the AER or ZER amongst other matters.

It's the Certificate of Conformity that the dealer will use when first registering the car and will take the vehicle details from that document.

Once you've got the ZER there's one last thing to do before you set about calculating your tax liabilities.

If the ZER is expressed as a whole number of miles then that's fine, but if the range has a value after the decimal point (e.g. 35.6 ZER), round the number up (so, for example, 35.6 becomes 36), then use the rounded up value for the tax calculation.

Why Is THE AER/ZER Important?

Each year your employer must provide details of your company car to HM Revenue & Customs so that the tax office can calculate your company car benefit correctly.

Because the tax rules were changed from April 2020 to rate the taxable benefit of hybrid company cars according to the car's range on zero emissions, your employer is legally required to report the ZER to HMRC every year on form P11D.

You'll also need the details for your self-assessment tax return and to enable you to check that HMRC has calculated your hybrid company car benefit properly at the end of the tax year.

Here's our Hybrid Table

To help you track down the the appropriate taxable benefit for hybrid cars we've published the tax values (excluding 'mild hybrids') where the CO2 output is between the 1-50GP/km limits. We will keep updating the list as more data becomes available.

We've also calculated the 2025-26 tax year benefit for each car based on the ZER and current P11D values.

Our list only covers the standard specification car - if you have added options to the car which could affect the ZER (for example, a different wheel/tyre combination) then make sure you track down the actual value for your car as built.

We've sorted our list by the smallest taxable benefit, but if you need the list sorted in a different way then just email us us for a copy of the list as a spreadsheet.

And of course you can see the taxable benefit for all types of company cars by following this link to our company car tax calculator.

Hybrid Table