Tax rules are now a major driver of how businesses build their vehicle fleets. As incentives for electric vehicles (EVs) gradually fade, planning has become more important than ever before.

Key takeaways:

EVs still offer strong tax advantages, especially through lower Benefit-in-Kind (BIK) rates compared with petrol and diesel cars.

ICE vehicles are becoming more expensive from a tax perspective, with higher BIK charges and less favourable allowances.

Vans are treated differently to cars often qualifying for a better BIK and capital allowance treatment.

Capital allowances and VAT rules matter, influencing when and how vehicle costs can be written off.

With rules evolving, regular fleet reviews and forward planning are essential to control long-term costs.

Bottom line: choosing the right mix of vehicles isn’t just about emissions anymore – it’s a strategic tax decision that can save (or cost) a business thousands of pounds.