Kinetic Brief – June 2026

PHEV tax changes, EV salary sacrifice, new car releases and fleet market updates from Kinetic Vehicle Leasing.

Kinetic Brief – June 2026

Welcome to the June edition of the Kinetic Brief.

We're at the halfway point of 2026 already. June tends to be quieter as people head off on holiday and decisions get pushed back, but it's actually one of the best times to get your planning done, particularly if you have vehicles coming up for renewal in Q3 or Q4.

Here's what we've been watching this month.

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Out of the Office

Earlier this year Kristin and I signed up to run the Edinburgh Half Marathon together in aid of Brain Tumour Research. It was my first half marathon. I'm far more comfortable on two wheels than two feet, but we got round in 1 hour 57 minutes, which I was pretty pleased with given the training had to fit around running a business and pretending to be a semi-professional cyclist.

We ran wearing Brain Tumour Research vests and it meant a great deal to both of us. Sadly, a short time after we crossed the finish line, Kristin lost her close friend Susan to the disease. Brain tumours kill more children and adults under 40 than any other cancer in the UK, yet receive just 1% of the national spend on cancer research. It's a cause that deserves far more attention than it gets.

If you'd like to donate, our fundraising page is still open at www.justgiving.com/page/kristinandcallum. Every contribution makes a difference.

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What's Happening in the Market

BIK on fully electric cars moved from 3% to 4% in April this year. It's still an exceptionally low rate. On a £58,000 car a 40% taxpayer is paying around £77 a month in company car tax, but it's worth factoring in as you plan ahead. The rate continues to rise gradually each year, which is exactly why acting sooner rather than later makes sense for higher rate taxpayers.

On the PHEV front, the picture is more significant. BIK rates for plug-in hybrids are currently as low as 6% depending on electric range, but from April 2028 a flat 18% rate applies to all PHEVs regardless of range, rising to 19% in 2029/30. If you're considering a PHEV and you're looking at a 3 or 4 year contract, the end date matters a great deal. It's a conversation worth having before you commit.

The ZEV mandate requires 33% of new car sales in 2026 to be zero emission, rising to 80% by 2030. That obligation sits with manufacturers rather than businesses directly, but it shapes supply and pricing. The practical effect right now is that manufacturers are pushing hard to move electric vehicles, and that's reflected in some competitive rates.

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Salary Sacrifice — Still the Biggest Opportunity Most SMEs Are Missing

We're having more conversations about salary sacrifice every month, and the question we hear most often is still: is this just for big companies?

It isn't.

Here's how it works in simple terms. An employee gives up part of their gross salary in exchange for a brand new electric vehicle. They save on income tax and National Insurance contributions. The employer saves on NI too. BIK on a fully electric car this year is just 4%. The scheme costs nothing to set up.

As a worked example, take the new BMW iX3, a fully specified electric SUV listing at around £58,000. For a 40% taxpayer the BIK liability is roughly £77 a month. Add that to the net salary sacrifice cost after tax and NI savings, and you're looking at a premium electric BMW for a net monthly outlay that most people would associate with something far more modest.

If you have employees earning above £50,000 who are currently leasing privately or running a petrol company car, it is worth a conversation. We set these schemes up for businesses of all sizes.

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One to Watch — The VW ID.Polo

Later this year Volkswagen will bring the ID.Polo to market, an electric replacement for one of the UK's best-selling cars. It's significant because it brings genuine EV technology into a segment that has historically been too expensive to electrify affordably.

For businesses running smaller vehicles for urban roles or lower mileage drivers, this could become a very practical salary sacrifice option. We'll have more detail on pricing and specifications as they're confirmed.

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New Car Releases Worth Knowing About

A few models generating genuine interest right now:

The Land Rover Defender Sport is expected later this year, a more compact entry point to the Defender family, likely with electrified powertrains. For businesses that need a capable 4x4 but find the full Defender oversized, this is one to keep an eye on.

The Kia EV3 and EV4 GT variants are also on the horizon, performance editions with meaningful real-world range. Kia continues to be one of the strongest names in the fleet EV space and these models will be competitive on salary sacrifice.

The Ford Ranger PHEV is now reaching UK customers, a genuine working pickup with electric-only capability for urban driving. For trade businesses that need towing capacity but want to reduce fuel costs on daily runs, it fills a gap that nothing else currently does.

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Recent Deliveries

It's always good to see vehicles getting out to clients. If you'd like to share a photo of your new car or van, we'd be happy to feature it in the next edition.