Company car tax on a Range Rover plug-in hybrid starts at 6% of the P11D value for 2025/26 and rises to 7% for 2026/27, provided the model’s official electric range sits between 70 and 129 miles. That puts the annual tax bill for a typical Range Rover Sport P510e somewhere between roughly £1,260 and £2,835, depending on your income tax band. The equivalent petrol or diesel Range Rover attracts up to 37%, so the plug-in hybrid company car tax charge is a fraction of what a combustion-only model would cost you.
The BIK Bands That Apply to Plug-in Hybrids
Every plug-in hybrid Range Rover emits between 1 and 50 g/km of CO2, so the Benefit-in-Kind percentage is set by how far the car can travel on electricity alone. HMRC publishes the bands several years ahead.
For 2025/26, the rates for cars emitting 1–50 g/km are:1GOV.UK. Work Out the Appropriate Percentage for Company Car Benefits (480 Appendix 2)
- 130 miles or more of electric range: 3%
- 70 to 129 miles: 6%
- 40 to 69 miles: 9%
- 30 to 39 miles: 13%
- Under 30 miles: 15%
For 2026/27, each band goes up by one percentage point, so the 70-to-129 band becomes 7% and the 40-to-69 band becomes 10%.1GOV.UK. Work Out the Appropriate Percentage for Company Car Benefits (480 Appendix 2)
Where Current Range Rover Hybrids Sit
The Range Rover P440e, the Range Rover Sport P510e, and the standard Range Rover plug-in hybrid have WLTP electric ranges in the region of 70 to 80 miles, depending on wheel size and specification. That places them in the 70-to-129-mile band: 6% for 2025/26 and 7% for 2026/27.1GOV.UK. Work Out the Appropriate Percentage for Company Car Benefits (480 Appendix 2)
Specification matters more than most drivers realise. Larger alloy wheels reduce the official WLTP electric range; smaller ones preserve it. If a configuration tips the electric range below 70 miles, the car falls into the 40-to-69 band and the BIK rate jumps to 9% or 10%. On a £110,000 P11D value that is more than £3,000 extra taxable benefit every year. Confirm the WLTP figure for your exact specification on the V5C or certificate of conformity before signing.
A quick boundary: Land Rover no longer offers the Evoque or Velar as plug-in hybrids, so those model lines currently sit on mild-hybrid petrol or diesel powertrains and the far higher BIK rates that come with them.
How to Calculate Your Bill
The calculation is: P11D value × BIK percentage × your income tax rate.
The P11D value is the list price including VAT, delivery, and the first registration fee. Factory-fitted options add to it, so metallic paint, upgraded audio, technology packs, and premium leather all feed straight into your tax bill.2HM Revenue and Customs. P11D Working Sheet 2 – Car and Car Fuel Benefit 2025 to 2026 A well-specified P510e can carry a P11D value north of £120,000. The figure is fixed for the life of the car as a company vehicle; it doesn’t fall with age or mileage.
Worked example. A Range Rover Sport P510e with a P11D value of £105,000, sitting in the 70-to-129-mile electric range band. For 2025/26 at 6%, the taxable benefit is £6,300. Your actual cash cost depends on your marginal rate:
- Basic rate (20%): £1,260 a year
- Higher rate (40%): £2,520 a year
- Additional rate (45%): £2,835 a year
For 2026/27 the rate rises to 7%. The taxable benefit becomes £7,350 and the higher-rate cost climbs to £2,940. HMRC collects the money through your PAYE code, so it comes out of your salary in monthly instalments.3GOV.UK. Tax on Company Cars Start or stop using the car mid-year and the benefit is pro-rated for the months you had it.
Fuel and Charging
If your employer pays for private fuel, a separate car fuel benefit charge applies. HMRC sets a fixed fuel benefit multiplier each year, and your BIK percentage is applied to it to produce an extra taxable amount. On a plug-in hybrid the low BIK percentage keeps the fuel charge modest, but it still adds up. Drivers who reimburse the employer for all private fuel avoid the charge entirely, and with a plug-in hybrid running mostly on electricity that is usually the cheaper option.
Workplace charging is an exempt benefit, so electricity your employer provides at work to charge the car is not taxable. Home charging is different: costs are only reimbursable tax-free when they fall within an approved mileage rate for business journeys.
Salary Sacrifice
Salary sacrifice arrangements are common for plug-in hybrids because the low BIK figure makes the maths work. You give up pre-tax salary in exchange for the car, saving income tax and employee National Insurance on the sacrificed amount, and pay BIK on the car in the usual way.
The catch is the optional remuneration rules. The taxable benefit is the higher of the normal BIK value or the salary you gave up. For plug-in hybrids the normal BIK figure is almost always lower, so the sacrificed salary becomes the taxable amount. Even so, the National Insurance savings on both sides often make salary sacrifice more efficient than a personal lease. Run the numbers on the specific quote before committing.
Employer National Insurance
If you’re the business owner as well as the driver, or you’re pricing the total cost, factor in the employer’s Class 1A National Insurance on the same taxable benefit figure. From April 2025 the Class 1A rate is 15%. On a £6,300 taxable benefit that is £945 a year in employer NI for one car.
Why the Timing Matters
HMRC has raised plug-in hybrid BIK bands by one percentage point in each of 2025/26 and 2026/27, and the schedule for the years beyond is on the same upward path.1GOV.UK. Work Out the Appropriate Percentage for Company Car Benefits (480 Appendix 2) Even after the rises, a Range Rover plug-in hybrid taxed at 6% or 7% against a petrol V8 at 37% is not close. The advantage is narrowing, not disappearing.