Pick-Up PHEV vs Diesel: BIK Savings Explained
If you're considering a pick-up for your business, you'll probably be aware of the new tax implications which now regard pic-ups as a car rather than a commercial vehicle. Well what does this mean, we'll look specifically at the Ford Ranger in this blog and help you to understand the difference in Benefit in Kind (BIK) tax introduced by the Government. We'll also consider the difference between the plug-in hybrid (PHEV) and the diesel (ICE) model and how much money you could save by making the switch. Choosing the right version can save company car drivers hundreds of pounds every month in tax – and at Advanced Vehicle Contracts, we have stock of both models ready to go.
Does the Ford Ranger PHEV still qualify for VAT relief?
Yes. The Ford Ranger PHEV still qualifies as a commercial vehicle, meaning VAT is fully reclaimable for businesses. There has been no change in this area, so companies can continue to benefit from this valuable relief.
When does BIK tax apply to the Ranger PHEV?
BIK tax only applies if the Ranger PHEV is used for personal use as well as business use. If it is exclusively for business purposes, no BIK liability will apply. This rule is the same for both the diesel and PHEV versions, but the rate you pay differs significantly.
Here’s an example of the BIK calculation based on the Ford Ranger Wildtrak PHEV:
- P11D value: £55,151
- CO₂ emissions: 19% BIK rate
- BIK value = £55,151 × 19% = £10,479
- Now, apply the relevant income tax rate:
Tax Rate Annual BIK Cost Monthly BIK Cost
20% £2,096 £174.66
40% £4,191 £349.25
Now, let's see how those savings stack up against the diesel version of the Ford Ranger:
Model 20% Taxpayer 40% Taxpayer
Ranger PHEV £174.66/month £349.25/month
Ranger Diesel £305.66/month £611.42/month
That’s a saving of over £150 per month for 40% taxpayers with the PHEV compared to the diesel!
Why the Ford Ranger is so popular with UK businesses
The Ford Ranger is one of the UK’s best-selling pickups – and for good reason:
- Versatility: Ideal for both work and lifestyle, whether you’re hauling tools and equipment or heading off for a weekend adventure.
- Capability: Excellent towing capacity, strong payload, and robust off-road performance.
- Comfort and tech: A premium interior and modern tech make it just as suitable for business travel as it is for tough job sites.
- Wide appeal: Loved by tradespeople, fleet managers, and company car drivers alike for its balance of performance, efficiency, and value.
- And with the PHEV version, businesses can add lower running costs and reduced BIK tax to that list, making it a financially smart choice without sacrificing capability.
Why lease your Ranger from Advanced Vehicle Contracts?
At Advanced Vehicle Contracts, we have stock available now for both the Ford Ranger PHEV and diesel models, so you won’t be waiting months for delivery. We specialise in helping businesses reduce BIK tax bills with low-emission vehicles, access industry leading lease rates on commercial vehicles and offer expert guidance on choosing the right pickup for their needs
If you want a pickup that’s versatile, popular with UK businesses, and delivers major company car tax savings, the Ford Ranger PHEV is a perfect choice. And with stock available today at Advanced Vehicle Contracts, you could be driving yours sooner than you think, to get the ball rolling on your Ford Ranger lease deal click the 'Call us Button' below now!






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