Here is the full picture for a fully electric car made available to you personally through your limited company in 2026-27. 1. Benefit in kind (your personal tax). A fully electric car produces zero CO2 emissions, and the appropriate percentage for zero-emission cars rises by one percentage point a year: 3% in 2025-26, 4% in 2026-27 and 5% in 2027-28 (set out in HMRC's policy paper on company car taxation following the Autumn Statement 2022). So for 2026-27 the cash equivalent is 4% of the car's list price, plus any accessories. On a £50,000 list price that is a £2,000 taxable benefit, costing £800 a year in income tax for a 40% taxpayer. The company reports it on form P11D. 2. Corporation tax. A new, unused electric car qualifies for 100% first-year allowances - HMRC's capital allowances guidance confirms new and unused cars with 0g/km CO2 qualify. The company deducts the full cost in the year of purchase, worth £12,500 of corporation tax relief at 25% on a £50,000 car. Two caveats: it must be bought new and unused (a second-hand electric goes into the main writing-down pool), and if you lease, relief comes through the lease rentals instead. 3. Charging costs. No separate benefit charge arises on the electricity used to charge a company car. If you charge at home, the company can reimburse you using HMRC's advisory electric rates - from 1 September 2026 these are 7 pence per mile for home charging and 15 pence per mile for public charging (reviewed quarterly). Reimbursing at or below the advisory rate, with mileage records, creates no extra taxable amount. 4. Class 1A NIC. Yes - the company pays Class 1A NIC on the car benefit value (a few hundred pounds on the £2,000 benefit above), reported on form P11D(b). There is no employee NIC on the benefit. The bottom line: at 4% the BIK is tiny next to the 37% charged on high-CO2 cars, the company gets full first-year relief on a new purchase, and charging costs add no further benefit charge. Just factor the Class 1A NIC on the small benefit into the company-side cost.
