What’s changing?
From 1st January 2025, the way emissions are measured for plug-in hybrid vehicles (PHEVs) changed to better reflect real-world driving conditions, the new testing standard is Euro 6-EB. Research suggests that many PHEVs are often driven in petrol or diesel mode more than expected, which can result in higher actual CO₂ emissions than the official figures suggest. The new testing standard aims to better reflect real-world emissions based on vehicle usage.
Vehicles currently on sale and certified under the existing Euro 6-EA standard will keep their published WLTP CO₂ values. However, once the new Euro 6-EB testing standard is in place, any PHEVs produced under this new standard may show higher CO₂ emissions figures.
The result of increased CO2 emissions will mean an increase to the Benefit-in-Kind (BIK) tax rate for company car drivers, and an increase to the Class 1A National Insurance Contributions for you as a company.
Will my fleet be affected?
Manufacturers have until December 2025 to complete these tests, making it hard to predict the exact outcome. No changes can be made once a vehicle is delivered, these changes will only apply to PHEV’s you have on order that are not delivered at the time of a move to the new testing standard for that model. We are in constant communication with manufacturers and our supplying dealers to understand the impact on their products once the tests have been completed.
What happens if I have an affected PHEV order?
We are actively managing your current orders and will notify you and your drivers if any order will be impacted by the change before delivery. This will give you and your driver the opportunity to opt out of the order if the BIK % increases.
Please refer to the table here for BiK Tax Bands based on the Co2 emission.
Euro6e-bis emission standard – BiK easement for PHEVs
A consultation will be launched in due course on proposals to mandate the Euro 6e-bis emission standard in Great Britain, which would apply to all new car and van registrations from April 2026, in line with Northern Ireland and the rest of the EU.
The government has announced plans to legislate for an easement that will apply UK-wide between April 2026 and April 2028 to help mitigate the benefit-in-kind impact that the new standard will have on PHEVs. This would be back dated for Northern Ireland, where the Euro 6e-bis emission standard has applied since January 2025.
We will keep you informed of the results of the easement, pending the consultation.