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Why plug-in hybrids make real sense for company car drivers

The practical electric range, long-distance fuel efficiency and low benefit-in-kind (BIK) tax rates of plug-in hybrids help you lower all the costs of running a company car...

The practical electric range, long-distance fuel efficiency and low benefit-in-kind (BIK) tax rates of plug-in hybrids help you lower all the costs of running a company car

Having a company car is a fantastic perk of the job and – if your role offers you this benefit – you’ll almost certainly want the best option to fit not just the demands of your job, but also your broader lifestyle.

Company car drivers who do a lot of work miles or who use their car for weekend escapes and big family adventures may want long-range petrol convenience. Equally, there are plenty of short trips when low-cost electric is the perfect fit. A plug-in hybrid offers the best of both.

So, using the Skoda Octavia iV (our 2021 What Car? Awards Plug-in Hybrid) and the Skoda Superb iV (our 2020 What Car? Electric Car Awards Plug-In Hybrid Estate) as examples, let’s explain how using a plug-in hybrid as a company car is both eminently practical and saves you money.

Work out your BIK contributions with our in-depth company car tax calculator.

Learn more about the Skoda Octavia at skoda.co.uk/new-cars/octavia
Find out more about the Skoda Superb at skoda.co.uk/new-cars/superb.
Discover more about Skoda’s fleet services at skoda.co.uk/fleet.

The UK’s fast-growing network of public charging stations lets you top up your battery to keep driving on electric power more often

Why switch to a plug-in hybrid company car?

All Skoda’s models exceed the tough Euro 6 and Euro 6d standards for significantly reduced CO2 emissions and greatly improved fuel efficiency, but it’s clear a big shift to electric driving is needed to significantly reduce the global CO2 emissions that contribute to climate change. 

That’s why the UK government has declared that all new models sold from 2030 must be electric or hybrid. Not everyone is ready for the full move to electric, though, and plug-in hybrids offer an ideal stepping stone – blending low-cost, low-impact electric for short journeys with petrol flexibility, hybrid efficiency and significantly lower CO2 on longer trips. 

As company cars are a large part of the UK car market, incentivising the adoption of plug-in hybrids through reduced VED road tax, lower congestion charges and significant benefit-in-kind (BIK) savings helps to drive the broader electric shift.

So, picking a plug-in hybrid as a company car doesn’t just help you be part of the solution, it also helps you cut your driving costs today – without changing how you use your car.

Clever packaging means you get an impressive 450 litres as standard in the Octavia iV hatchback, all the way up to 1,800 litres in the Superb iV estate

Is a plug-in hybrid a practical company car for everyday driving?

The average UK driver does just 25-30 miles a day. By contrast, the Skoda Superb iV covers 37 miles in electric-only E-mode, while the Skoda Octavia iV does 43 miles. So, it’s clear that a plug-in hybrid offers easily enough range to do most journeys on electric power alone.

Equally, most company car journeys start or end at home or the office. So, if you have access to off-street parking, you can use a wallbox charger to top up the Skoda Octavia iV and Superb iV’s plug-in hybrid battery when it’s not being used – during the day at work, or overnight at home.

A 3.6kW charger can recharge the battery to 100% in 4-5 hours for as little as £1.50 on off-peak electric rates. That means driving costs as low as 3.4p per mile.

If you’re heading further afield, a plug-in hybrid such as the SKODA Superb iV delivers real flexibility

Is a plug-in hybrid company car good for long journeys?

If you’re heading further afield, a plug-in hybrid delivers real flexibility. On the Skoda Octavia iV and Superb iV the electric motor and 1.4-litre TSI petrol engine work together intelligently in Hybrid mode to deliver the best blend of electric efficiency and petrol power as needed. 

Refuelling is as simple as splash and dash. Equally, the UK’s fast-growing network of public charging stations lets you top up your battery to keep driving on electric power more often. 

There are over 38,000 connectors at 14,000 locations around the UK, including plenty of destinations – such as city centre car parks, suburban shopping centres, cinemas, gyms and hotels – where you park for longer periods and can keep your batteries topped up at cost-effective rates while you’re enjoying meetings, long lunches or family days out.

Using the Skoda Connect in-car sat-nav, you can easily find the perfect charger near you. Equally, you can use the Skoda Connect smartphone app to remotely track your charging.

The Skoda Superb iV covers 37 miles in electric-only E-mode, while the Skoda Octavia iV does 43 miles

How much money can a plug-in hybrid save me?

This is where a plug-in hybrid really changes the game. How much you pay each month for a company car depends on its P11D value at purchase, its CO2 output and its electric range. A blend of these create the benefit-in-kind (BIK) rate you pay for your car, depending on whether you’re in the 20% or 40% income tax bracket.

Take the Skoda Octavia iV plug-in hybrid and the petrol-powered Octavia 1.5 TSI SE L. With a 2021/2022 BIK rate of just 7% for the Octavia iV, the contributions for a 20% taxpayer are just £463 per year or just under £39 a month. Even with the petrol Octavia’s lower P11D purchase price, its higher BIK rate of 28% means £1408 per year or £117 a month for a 20% taxpayer. By picking the plug-in hybrid, you save £78 a month or £2808 over three years.

It’s a similar saving for a plug-in hybrid over a similar diesel. Comparing the Skoda Superb iV plug-in hybrid’s 11% BIK rate with the Superb 2.0 TDI 150PS SE L’s BIK rate of 29%, a 20% taxpayer would pay just £67 per month for the plug-in hybrid, compared to £143 per month for the diesel model. Again, a significant saving of £2724 over three years.

The incentives for plug-in hybrids keep coming. Both the Skoda Superb iV and Octavia iV plug-in hybrid boast lower annual road tax than their petrol or diesel equivalents and are exempt from fees such as the London congestion charge and ultra-low emissions zone (ULEZ).

And, while your mileage may vary, the more you use low-cost overnight electric charging and long-distance hybrid fuel efficiency, the more money you save on every trip.

Using the Skoda Connect in-car sat-nav, you can easily find the perfect charger near you. Equally, you can use the Skoda Connect smartphone app to remotely track your charging.

Is a plug-in hybrid practical to use as a company car?

First, the Skoda Octavia iV and Superb iV give you plenty of choice – with both models available as a hatchback and estate, alongside a wide range of feature-packed trim levels from SE Technology through to Laurent & Klement, giving you a choice to suit your budget.

The plug-in hybrid batteries do take up a small portion of the load space of both models, but clever packaging mean you still get an impressive 450 litres as standard in the Octavia iV hatchback, all the way up to 1,800 litres in the Superb iV estate. Equally, this doesn’t affect the space or features up front, meaning you get all the passenger space, and cleverly thought-out, driver-friendly practicality you expect from a Skoda. 

On motorways and A-roads, the electric motor and 1.4-litre TSI petrol engine work together – delivering 218PS and 400Nm in the Superb iV

Is a plug-in hybrid still fun to drive?

If anything, plug-in hybrids actually make driving more fun. The 85kW (115PS) electric motor in the Skoda Octavia iV and Superb iV is perfect for the mix of slower short journeys that tend to be done on electric power alone. 

On motorways and A-roads, the electric motor and 1.4-litre TSI petrol engine work together – delivering 205PS and 350Nm in the Octavia iV, and 218PS and 400Nm in the Superb iV. Blending turbocharged TSI petrol performance with the boost of instantly available electric torque, that means 0-62mph in a punchy 7.7 seconds. If you want even more driving thrills, the Skoda Octavia vRS iV boasts 245PS, 400Nm of torque for 0-62mph in 7.3 seconds.

So, with low-cost short-range electric driving, long-distance money-saving hybrid efficiency, low monthly payments, reduced running costs and a car that doesn’t deliver any compromise on its traditional petrol or diesel rivals, why wouldn’t you opt for the plug-in hybrid?

Work out your BIK contributions with our in-depth company car tax calculator.

Learn more about the Skoda Octavia at skoda.co.uk/new-cars/octavia
Find out more about the Skoda Superb at skoda.co.uk/new-cars/superb.
Discover more about Skoda’s fleet services at skoda.co.uk/fleet.

Please note: some of the equipment and features described here are either optional or are only available on selected trims. Please ask a Skoda retailer for details.

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