Ownership

Can I use a Chinese EV as a company car in the UK and what is the BIK?

Updated 2026-05-046 min read
Can I use a Chinese EV as a company car in the UK and what is the BIK? — ChinaEV.Autos guide

UK company-car tax rules treat all BEVs equally regardless of origin. Here's the exact math for popular Chinese models.

01

BIK rates for pure BEVs

2024-25 and 2025-26: 2%

2026-27: 3%

2027-28: 4%

2028-29: 5%

The rate is applied to the P11D value (list + delivery + VAT, before OTR).

02

Worked examples for 2026-27 (3% rate)

  • BYD Dolphin (£28,000 P11D): 3% = £840 taxable. 40% payer: £336/year
  • BYD Seal RWD (£42,000): 3% = £1,260. 40% payer: £504/year
  • Xpeng G6 LR (£48,000): 3% = £1,440. 40% payer: £576/year
  • Zeekr 001 Performance (£62,000): 3% = £1,860. 40% payer: £744/year
  • Compare: BMW 330d M-Sport diesel = ~£10,500/year BIK for a 40% payer
03

Salary sacrifice — the multiplier

For a 40% payer + 2% NIC, salary-sacrificing a £48k Xpeng G6 (over 4 years, £700/mo) actually reduces net take-home by ~£350/mo. That's a 50%+ effective discount vs personal purchase.

Combined with 100% first-year capital allowance for the employer, this is the strongest EV incentive in the UK today.

4-year TCO stack — UK fleet, 100,000 kmBYD Atto 3£21,500VW ID.3£25,300DepreciationEnergyInsuranceServiceTyresOther
Fig. 08 — 4-year TCO stack, fleet basis
Key takeaways
  • 01All BEVs get the low BIK rate regardless of brand.
  • 0240% payer BIK on a £42k Seal = £504/year in 2026-27.
  • 03Salary sacrifice roughly halves effective monthly cost.

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