Owners of some vehicles could be hit with a staggering increase in benefit-in-kind rates (Image: Getty)
Motorists with the keys to popular plug-in hybrid models face staggering over the next half a decade.
up until 2029 were confirmed at the Autumn Budget over the next five years.
Hybrid owners are among the most affected with motorists currently
However, fees are set to rise to 3% from April for the 2025/26 tax year before a further rise to 6% the year after.
By the end of the decade, hybrid owners will be charged a whopping 18% benefit-in-kind rate in a hefty rise for many.
Owners of hybrid vehicles face hefty rises (Image: Getty)
Andy Wood, international tax advisor at , urged road users looking at securing a hybrid vehicle to “factor in” the hefty rises before committing to a deal.
Andy said: “Hybrid owners beware: starting in 2028/29, your VED tax rates will jump to 18%, signalling a clear push toward fully electric options.
“If you’re planning to invest in a new car, make sure you’re factoring in these tax changes.”
Plug-in hybrids are powered by a mix of an electric motor and a combustion engine, making them a popular halfway option for those considering a move to EVs.
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, an increase in company car taxation rates will generate a handsome return.
The move is expected to add an extra £135million in 2028 with a bonus £210million made available as a result of the policy in 2029.
confirmed the move will have an impact on an estimated 760,000 employees who drive a company car.
Meanwhile, recent data suggests there are approximately 656,000 plug-in hybrid cars on UK roads with demand likely to grow.
said: “This measure will provide long-term certainty on company car tax rates including continued incentives to support the take-up of zero-emission and electric vehicles.
“In addition, the increase in appropriate percentages will ensure the tax system continues to support the sustainability of the public finances.
“Rates for electric vehicles will increase gradually, while maintaining a significant differential between electric vehicles and internal combustion engine (ICE) vehicles.
“Appropriate percentages for hybrid vehicles (with CO2 emissions of 1g to 50g per kilometre) will be increased to align more closely with ICE vehicles, to further focus support towards electric vehicles.”