Petrol, diesel and electric car drivers are being warned of fresh car tax changes launching today that could see them slapped with hefty charges.
From today, Monday, April 6, 2026, new Benefit-in-Kind tax rates will be introduced, impacting thousands of company car drivers.
While a large number of vehicle bands, which are dictated by the vehicle's emissions output, will remain at the same rate as 2025/26, many drivers will face price hikes.
Drivers of electric company cars will see price increases, with the BiK rate for EVs with an electric range of more than 130 miles increasing from three to four per cent.
TRENDING
Stories
Videos
Your Say
For the average basic rate taxpayer with a £40,000 electric car, their monthly costs will rise from £20 to around £26.67.
The low rates are being maintained to incentivise motorists to ditch expensive petrol and diesel in favour of affordable electric cars.
A temporary easement for plug-in hybrid vehicles was also given the green light in Chancellor Rachel Reeves' Autumn Budget.
The easement is in place from January 1, 2025, until April 5, 2028, and is being introduced to prevent the tax charge from "increasing significantly" as a result of new emissions standards.
New car tax changes being introduced today will have an impact on company car drivers across the UK
|GETTY/PA
The most polluting petrol and diesel vehicles, namely those which emit more than 170g of CO2 per kilometre, remain on a huge 37 per cent BiK rate.
Further company car tax changes were scheduled for April 6, 2026, which would have seen Employee Car Ownership Schemes (ECOS) brought into the scope of BiK rules.
However, Chancellor Rachel Reeves confirmed that the sector would be given more time to adjust to the changes, with the implementation delayed until April 2030, and transitional arrangements until April 2032.
GB News has rounded up the new company car tax rates coming into effect for the 2026/2027 tax year.
LATEST DEVELOPMENTS
Benefit-in-Kind tax rates remain affordable for electric vehicles and efficient plug-in hybrid models
| FORDCompany car tax rates from April 6, 2026
0g/km - Rising from three per cent to four per cent
1-50g/km (more than 130 miles of electric range) - Rising from three per cent to four per cent
1-50g/km (70-129 miles of electric range) - Rising from six per cent to seven per cent
1-50g/km (40-69 miles of electric range) - Rising from nine per cent to 10 per cent
1-50g/km (30-39 miles of electric range) - Rising from 13 per cent to 14 per cent
1-50g/km (less than 30 miles of electric range) - Rising from 15 per cent to 16 per cent
51-54g/km - Rising from 16 per cent to 17 per cent
55-59g/km - Rising from 17 per cent to 18 per cent
60-64g/km - Rising from 18 per cent to 19 per cent
65-69g/km - Rising from 19 per cent to 20 per cent
70-74g/km - Rising from 20 per cent to 21 per cent
75-79g/km - Remains at 21 per cent
80-84g/km - Remains at 22 per cent
85-89g/km - Remains at 23 per cent
90-94g/km - Remains at 24 per cent
95-99g/km - Remains at 25 per cent
The most polluting vehicles, including the popular Ford Ranger Wildtrak, will see BiK taxes remain at 37 per cent
| FORD100-104g/km - Remains at 26 per cent
105-109g/km - Remains at 27 per cent
110-114g/km - Remains at 28 per cent
115-119g/km - Remains at 29 per cent
120-124g/km - Remains at 30 per cent
125-129g/km - Remains at 31 per cent
130-134g/km - Remains at 32 per cent
135-139g/km - Remains at 33 per cent
140-144g/km - Remains at 34 per cent
145-149g/km - Remains at 35 per cent
150-154g/km - Remains at 36 per cent
155-159g/km - Remains at 37 per cent
160-164g/km - Remains at 37 per cent
165-169g/km - Remains at 37 per cent
Over 170g/km - Remains at 37 per cent