I have a company and the use of a company car. If I use my company car for both personal and business purposes, would the personal use be treated as a benefit-in-kind (BIK)? Would it be more tax-efficient if I purchased an electric or hybrid car? 

Arthur replies: 

If you use a company-owned car for any private journeys (including commuting), that personal use is treated as a taxable benefit-in-kind (BIK) based on the car’s list price multiplied by an ‘appropriate percentage’ that reflects its CO2 emissions and, where applicable, its electric-only range. Pure electric vehicles (EVs) and low-emission hybrids attract much lower BIK rates - just 3% of list price for 2025/26 (versus up to 37% for high-emission petrol cars). From 6 April 2025, the EV rate rises to 3%, then increases by 1% each year through to 5% in April 2028.