Benefit in Kind (BIK) taxation is lower on electric cars than it is on hybrids, and is massively lower than petrol and diesel cars. For 2023/2024 and 2024/2025 financial years BIK on electric cars is set at 2%. After this it will increase 1% per year, reaching 5% by 2027/2028.
This is a great saving for businesses and company car drivers. As an example, take the latest Kia e-Niro and compare this to a petrol hybrid version of the same car, the figures are given for a 40% taxpayer and show annual BIK payable.