Best Plug-in Hybrid Cars for Salary Sacrifice 2026
Source: BMW Press Group
As we move into 2026, plug-in hybrid electric vehicles (PHEVs) are becoming a vital bridge in the journey towards full electrification. For many drivers, they offer the ideal balance between low emissions and long-distance flexibility. When accessed through a salary sacrifice scheme, these cars deliver major tax and cost advantages - particularly as Benefit-in-Kind (BiK) rates for low-emission hybrids are favourable compared with petrol or diesel equivalents.
At The Electric Car Scheme, we only offer PHEVs with the lowest emissions and the highest electric range, helping employers and employees make the cleanest possible choice while staying practical.
Premium PHEV Salary Sacrifice Options
Mercedes-Benz GLE Diesel Coupé: Executive Luxury SUV
Starting from £86,865
The Mercedes-Benz GLE Diesel Coupé Plug-in Hybrid combines elegant styling with long-distance comfort and diesel-hybrid efficiency. It delivers strong torque for motorway cruising and a quiet electric mode ideal for local driving. This model suits company directors and frequent travellers who are looking for executive comfort with lower BiK tax exposure.
Key specifications:
Battery options: 63 kWh and 77 kWh usable capacities
Range: Up to 355 miles WLTP for the SE L 85 model, more than enough for most weekly driving
Performance: 210 kW (282 bhp) in higher trims; 0-62 mph in under 7 seconds
Charging: Up to 135 kW DC (10–80% in approximately 28 minutes), quick enough for a coffee break
Versions: Standard SE L 85, plus performance-oriented vRS variant
The GLE Diesel Coupé delivers smooth refinement and impressive real-world efficiency when regularly charged. Its diesel engine allows for sustained range on longer journeys, making it well-suited for mixed city-driving and motorway use.
EV Alternatives: Consider the fully electric Mercedes EQC or BMW iX3 for a similar size and refinement with lower BiK rates.
Range Rover Sport SE PHEV: Prestige Meets Sustainability
Starting from £91,090
The Range Rover Sport Plug-in Hybrid blends luxury SUV refinement with up to 76 miles of electric range. It maintains Range Rover’s trademark capability while dramatically lowering running costs under salary sacrifice.
Specifications
Powertrain: 3.0-litre petrol + 38.2kWh battery, 460 bhp
Electric Range: Up to 76 miles WLTP
Charging: 50kW DC charging (0–80% in under an hour)
BiK Rate (2026): From 8%
Despite its size, the Range Rover Sport offers agile handling and remarkable refinement in electric mode. It’s ideal for those who want luxury and sustainability without compromise.
EV Alternatives: The Range Rover Electric and BMW iX provide similar luxury appeal with zero tailpipe emissions.
Volvo XC60 Recharge: Scandinavian Comfort SUV
Starting from £55,360
The Volvo XC60 Recharge T8 combines Scandinavian design with hybrid efficiency. It offers strong performance, premium comfort, and class-leading safety, making it one of the most balanced family SUVs on the market.
Key specifications:
Powertrain: 2.0-litre petrol + 18.8kWh battery, 455 bhp
Electric Range: Up to 51 miles WLTP
Charging: 3.7kW AC (0–100% in ~5 hours)
BiK Rate (2026): 10-12%
Source: Volvo Newsroom
The XC60 delivers composed handling and much-needed comfort on long journeys. Volvo’s driver assistance suite makes daily commuting effortless, while its plug-in system suits drivers with home charging access.
EV Alternatives: Consider the fully electric Polestar 2 or Volvo EX60 for a similar driving experience with lower tax exposure.
Family PHEV Options
Toyota Prius Plug-in Hybrid: Everyday Efficiency
Starting from £36,395
The Toyota Prius Plug-in Hybrid remains one of the most efficient ways to reduce running costs under salary sacrifice. Its focus on low emissions, reliability, and long-term affordability makes it a strong choice for families or commuters.
Specifications:
Powertrain: 2.0-litre petrol + 13.6kWh battery, 220 bhp
Electric Range: Up to 53 miles WLTP
Charging: 3.3kW AC (0–100% in 4 hours)
BiK Rate (2026): Around 8–10%
The Prius prioritises smooth hybrid transitions and high efficiency in real-world driving. Its smaller size and strong fuel economy make it ideal for city and suburban use, especially when paired with home EV charging. This car is best for families or commuters prioritising low emissions, reliability, and simplicity.
EV Alternatives: The Hyundai IONIQ 6 or Volkswagen ID.3 offer comparable range and efficiency as fully electric alternatives.
BMW X3 Plug-in Hybrid: Dynamic Family SUV
Starting from £72,125
The BMW X3 xDrive30e delivers the sporty handling expected of BMW with the practicality of a family SUV. Its strong electric range, four-wheel drive, and premium interior make it one of the best hybrid cars for salary sacrifice.
Specifications:
Powertrain: 2.0-litre petrol + 12kWh battery, 292 bhp
Electric Range: Up to 31 miles WLTP
Charging: 3.7kW AC (~4 hours full charge)
BiK Rate (2026): 10–14%
Source: BMW Press Group
The X3’s chassis tuning gives it a sporty yet comfortable feel, while the hybrid setup ensures silent, zero-emission short trips. It works particularly well for mixed city and motorway use. This car is best for families or professionals wanting a balance of performance and practicality under BMW salary sacrifice.
EV Alternatives: The BMW iX3 or Tesla Model Y offer similar practicality with greater tax efficiency.
Ford Kuga Plug-in Hybrid: Compact Everyday SUV
Starting from £32,265
The Ford Kuga PHEV offers impressive value with strong electric range and flexible running costs. It’s one of the most accessible routes into hybrid SUV ownership through Ford salary sacrifice.
Specifications:
Powertrain: 2.5-litre petrol + 14.4kWh battery, 225 bhp
Electric Range: 37–39 miles WLTP
Charging: 3.6kW AC (0–100% in ~3.5 hours)
BiK Rate (2026): 10–12%
Image source: Ford Press Centre
The Kuga’s light steering and compact footprint make it ideal for urban environments. Its efficient hybrid system helps reduce fuel spend without compromising practicality. This is a particularly great choice for employees looking for a lower-cost, family-friendly hybrid SUV that’s easy to run and charge.
EV Alternatives: The Hyundai Kona Electric and Volkswagen ID.4 are strong zero-emission options in the same size category.
Other PHEVs to Consider
Porsche Panamera PHEV: High-Performance Executive Hatchback
Starting from £99,100
The Porsche Panamera 4 E-Hybrid combines plug-in technology with Porsche’s signature performance DNA. It’s one of the fastest plug-in hybrids on the market, with serious appeal for those who want both speed and sustainability.
Specification:
Powertrain: 2.9-litre twin-turbo V6 + electric motor, 455 bhp
Electric Range: Up to 39 miles WLTP
Charging: 7.2kW AC (0–100% in 4 hours)
BiK Rate (2026): 17–20%
Source: Porsche Newsroom
The Panamera balances sharp dynamics with luxury refinement, offering a driving experience unmatched in the segment. Salary sacrifice helps make this high-end performance model more tax-efficient for higher earners.
EV Alternatives: The fully electric Porsche Taycan delivers equivalent pace and prestige with 3% BiK.
Audi A5 Avant PHEV: Executive Estate Versatility
Starting from £52,100
The Audi A5 Avant 50 TFSI e brings plug-in hybrid efficiency to a sleek executive estate. Its combination of practicality, low emissions, and quiet refinement makes it well-suited for business users.
Specifications:
Powertrain: 2.0-litre petrol + 17.9kWh battery, 299 bhp
Electric Range: Up to 41 miles WLTP
Charging: 7.4kW AC (0–100% in ~2.5 hours)
BiK Rate (2026): Around 10–13%
The A5 Avant delivers smooth acceleration and strong refinement. Its electric range covers most daily commutes, reducing fuel use and monthly costs via salary sacrifice. This car is typically best for professionals who want a a stylish, practical executive estate under Audi salary sacrifice.
EV Alternatives: The Audi Q4 e-tron or Tesla Model 3 serve as low-BiK all-electric alternatives.
Mercedes C-Class Diesel Estate PHEV: Long-Range Efficiency
Starting from £52,100
The Mercedes C-Class C300de Estate offers a rare diesel plug-in setup that excels on longer journeys. It combines the high efficiency of diesel with the urban benefits of electric range.
Specifications:
Powertrain: 2.0-litre diesel + 25.4kWh battery, 335 bhp
Electric Range: Up to 67 miles WLTP
Charging: 55kW DC fast charging (10–80% in ~20 mins)
BiK Rate (2026): 8–10%
This PHEV achieves excellent motorway economy while cutting emissions in cities. It’s a strong fit for drivers covering high annual mileage but wanting access to low-tax benefits.
EV Alternatives: The Mercedes EQE Estate or BMW i5 Touring deliver comparable space and refinement as all-electric options.
PHEV vs EV Salary Sacrifice Comparison
Choosing between a plug-in hybrid (PHEV) and a fully electric vehicle (EV) can be one of the most important decisions when joining a salary sacrifice scheme. Both offer significant tax and running cost savings, but the right choice depends on your driving habits, charging access, and daily mileage.
PHEVs provide the flexibility of petrol backup with low emissions during local trips. This makes them ideal for drivers without consistent home charging access or those who frequently cover long distances. In contrast, full EVs offer the lowest Benefit-in-Kind (BiK) rates and minimal running costs, rewarding drivers who can charge regularly at home or work.
The table below offers a side-by-side comparison to help identify which option best suits your lifestyle, fleet strategy, or company car policy.
| Category | Plug-in Hybrid (PHEV) | Fully Electric (EV) |
|---|---|---|
| BiK Rate (2026) | 6–20% | 3% |
| Ideal For | Mixed/rural driving, no home charger | Regular short commutes with charging access |
| Range Flexibility | 30–70 miles electric + petrol backup | 200–350 miles electric only |
| Cost via Salary Sacrifice | Lower than petrol/diesel | Lowest overall |
| Environmental Impact | Low emissions (depending on your charging habits) | Zero tailpipe emissions |
PHEV Salary Sacrifice Calculator Examples
Understanding how salary sacrifice affects your take-home pay is key to making an informed choice. The examples below show how plug-in hybrids perform.
Each example assumes 10,000 miles per annum, 4 year lease and a flat payment profile. This also includes the service, maintenance, tyres, MOT & breakdown cover - all bundled within the Electric Car Scheme monthly cost. While actual pricing varies by specification, the table shows how even premium models remain tax-efficient compared to petrol or diesel equivalents.
| Tax bracket | Example car | Monthly Net Cost | NI & Income tax savings (per month) | BiK costs (per month) |
|---|---|---|---|---|
| 20% | Toyota Prius (PHEV) | £515 | £165 | £89 |
| 20% | Audi A5 Avant 2.0 TFSI 299 e Quattro (PHEV) | £672 | £217 | £115 |
| 40% | Mercedes C-Class C300de (PHEV) | £872 | £484 | £204 |
| 40% | Range Rover Sport 3.0 P460e SE (PHEV) | £1,705 | £784 | £559 |
If you want to see how much you can save on your dream EV, visit our quote tool! All you have to do is input your salary and desired lease terms and you can explore your options!
| Tax bracket | Example car | Monthly Net Cost | NI & Income tax savings (per month) | BiK costs (per month) |
|---|---|---|---|---|
| 20% | Toyota Prius (PHEV) | £515 | £165 | £89 |
| 20% | Audi A5 Avant 2.0 TFSI 299 e Quattro (PHEV) | £672 | £217 | £115 |
| 40% | Mercedes C-Class C300de (PHEV) | £872 | £484 | £204 |
| 40% | Range Rover Sport 3.0 P460e SE (PHEV) | £1,705 | £784 | £559 |
If you want to see how much you can save on your dream EV, visit our quote tool! All you have to do is input your salary and desired lease terms and you can explore your options!
Plug-in hybrids remain a smart transitional choice for salary sacrifice, especially in 2026. With favourable BiK rates, strong electric ranges, and lower total cost of ownership, PHEVs are ideal for drivers who want flexibility without compromising sustainability.
At The Electric Car Scheme, we make net zero the obvious choice by giving employees and businesses access to the cleanest, most affordable cars available - whether hybrid or fully electric.
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Last updated: 13/10/2025
Our pricing is based on data collected from The Electric Car Scheme quote tool. All final pricing is inclusive of VAT. All prices above are based on the following lease terms; 10,000 miles pa, 36 months, and are inclusive of Maintenance and Breakdown Cover. The Electric Car Scheme’s terms and conditions apply. All deals are subject to credit approval and availability. All deals are subject to excess mileage and damage charges. Prices are calculated based on the following tax saving assumptions; England & Wales, 40% tax rate. The above prices were calculated using a flat payment profile. The Electric Car Scheme Limited provides services for the administration of your salary sacrifice employee benefits. The Electric Car Scheme Holdings Limited is a member of the BVRLA (10608), is authorised and regulated by the FCA under FRN 968270, is an Appointed Representative of Marshall Management Services Ltd under FRN 667174, and is a credit broker and not a lender or insurance provider.
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