No company car driver wants to be stung with more BIK than they need to, but going electric in the case of the VW Golf will actually increase your bills over the plug-in hybrid GTE model.
Opting for the 1.6 TDI diesel will also prove more costly than going for the 1.0 TSI petrol equivalent.
The reason for this is that BIK costs aren’t just based upon cars’ CO2 emissions, but the P11D value – which is closely related to the list price. This means that paying more to get a lower-emission car in the expectation that this will cut your tax bills could be a false economy – especially as you’re likely to be using up more of your company car allowance in higher leasing costs.
Read on to find out how to get the lowest tax Volkswagen Golf for your needs, and visit our leasing section for the best deals if you source your own car.
Plug-in hybrid Volkswagen Golf GTE costs less in BIK than all-electric e-Golf
New car tax bands – where only zero-emission cars are eligible for £0 road tax – might be pushing drivers towards all-electric models, but there’s no financial reason in company car tax terms to go for the e-Golf over the Golf GTE PHEV either.
Not only does the e-Golf cost more than the GTE – with a predicted list price of just over £32,000 compared with £29,980 for the GTE – but they both slot into the same BIK band with 9% charged. This means that you’ll have to shell out several pounds more each month in tax with the electric car.
Claimed range between charges for the e-Golf is now 186 miles – up from 118 miles in the previous version – with a stated real-world figure of around 125 miles – though this is still likely to prove limiting for many company car drivers. The GTE also offers greater performance, sprinting from 0-62mph in 7.6 seconds, compared with 9.6 seconds for the e-Golf.
Company car tax bands:
Volkswagen Golf GTE: 9%
Volkswagen e-Golf: 9%
2017/2018 BIK bills for driver*:
Volkswagen Golf GTE: £46/£92 (20/40% taxpayers respectively)
Volkswagen e-Golf: BIK: £48/£96 (20/40% taxpayers respectively)
Petrol 1.0 TSI VW Golf cuts company car driver tax over diesel 1.6 TDI equivalent
If your allowance won’t quite stretch to an e-Golf or GTE, the BIK surprises don’t stop there; opting for a 1.0-litre TSI 110 petrol Golf will save you hundreds per year over the equivalent 1.6 TDI 115. That’s true whether you opt for a manual model or one kitted out with a DSG automatic gearbox.
Over the 2017/2018 tax year higher-rate taxpayers could save themselves £408 by choosing the faster, more refined petrol – £34 per month. If you think that you’ll make that money up with fuel savings, think again. A company car driver covering 12,000 private miles a year would only save £12 per month with the 68.9mpg diesel over the 58.9mpg petrol, making the latter better value for 20% and 40% taxpayers alike.
Company car tax bands:
Volkswagen Golf 1.0 TFSI 110 SE Nav 5dr: 20%
Volkswagen Golf 1.6 TDI 115 SE Nav 5dr: 23%
2017/2018 BIK bills for driver*:
Volkswagen Golf 1.0 TFSI 110 SE Nav 5dr: £67/£134 (20/40% taxpayers respectively)
Volkswagen Golf 1.6 TDI 115 SE Nav 5dr: £84/£168 (20/40% taxpayers respectively)
Want to find out more about company cars? Take a look at the stories below:
Petrol or diesel: which Audi A3 costs less in BIK tax?
New Mazda CX-5 and Volvo XC60 pricier to tax than before
Best electric cars for company car drivers
*BIK figure calculated assuming standard car with no optional extras fitted.
