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If you don’t want an electric car A hybrid car is probably the next best option. Hybrid cars are efficient from a fuel cost perspective, and pretty good value for lease terms. However, on the downside, the tax implications are quite significant. Company cars are treated as a benefit – part of your salary package, so you’ll be paying tax and National Insurance (NI) on the full value of the car. The actual rate of tax depends on the emissions of the car. A Tesla has zero emissions which means the tax rate is only 2% of the value of the car. In comparison, a hybrid car will have similar lease costs, but the emissions range from 100-150, with a tax rate of 20-30% of the value of the car, which is a huge difference. So, it’s important to factor into your decision making not just the lease cost of the car, and whether that’s good value, but also the cost of the tax and the NI on top. 90% of the time, people are opting for electric cars because of the huge tax benefit. For those who don’t want to choose an electric car, whatever other fuel type car they choose will come with a higher tax bill – the taxable value of most current plug-in hybrid cars is 8-12% of the list price, whereas it’s 25% for a typical ‘self-charging’ hybrid, which is comparable to an equivalent petrol or diesel car.