Advertisement feature from Mercedes-Benz

Strong financial incentives now exist to support ultra-low emission cars.

From a driver’s perspective, these cars qualify for a benefit-in-kind (BIK) tax rate of just 5%, compared to a minimum of 16% for even the lowest emission diesel cars.

A Mercedes-Benz C 350 e Sport Saloon, for example, costs £100 less per month in BIK tax than a Mondeo 2.0-litre TDCi, while the B-Class Electric Drive costs a company car driver almost £40 less per month than a Golf 1.6TDI*.

Since national insurance contributions (NIC) are due on an employee’s benefit charge, there are further corporate savings to put a smile on the finance director’s face, alongside the fuel cost savings.

The Energy Savings Trust calculates that it costs £2 to £3 to charge up an electric car for a range of about 100 miles, compared to £12-£18 for a diesel car to cover the same distance.

And the savings extend further. Not only are electric and hybrid cars, for example the Mercedes-Benz S 500 Plug-in Hybrid, exempt from road tax, but they also qualify for grants of up to £5,000 or 20% of the cost of a new vehicle.

In addition, the entire acquisition cost can be written off against company profits in the very first year (compared to 8% or 18% for conventionally fuelled vehicles). 

This new landscape of tailpipe taxes and tax incentives represents a huge opportunity for businesses to drive down the wholelife cost of company cars and boost the bottom line.

Mercedes-Benz has been pioneering new technology for greener driving. But it’s not just in engine and exhaust development that’s helping fleets to lower their fuel bills, and carbon footprint.


At Mercedes-Benz World, expert instructors coach company car drivers to develop a more fuel-efficient driving style. While the Mercedes-Benz Mile Tracker app can help drivers to keep an accurate record of their business miles, so employers don’t waste money reimbursing private journeys.

For more insight into key fleet issues and advice on practical steps to take, visit FleetWise. It’s a brand new six-month programme packed with best practice tips, designed specifically to help with the day-to-day running of your company fleet, brought to you by Mercedes-Benz in partnership with Fleet News.

The first FleetWise topic covers the politics of pollution, environmental vehicle taxes, an analysis of current vehicle technology, and handy ways to control and cut company fuel bills.


To find out more, click here.


*Data taken from the Mercedes-Benz Comparison Tool. Comparison between a Mercedes-Benz C-Class Saloon C 350 e Sport (auto) and a Ford Mondeo Diesel Hatchback 2.0 TCDi Zetec 5dr Powershift; and a Mercedes-Benz B-Class Electric Drive Sport 5dr (auto) and a VW Golf Diesel Hatchback 1.6 TDI S 5dr. For more information visit fleetcomparisontool.mercedes-benz.co.uk