Your Guide to Understanding Ranger Tax

The differences between Plug-In Hybrid & Diesel

Since the taxation changes back in April, there's a lot to consider when trying to work out which is the right Ranger for you and your business.

In our guide below, we will help you understand the costs and benefits of ownership between the Plug-In Hybrid (PHEV) and Diesel variants.

Write-Down Allowance (WDA)

This is based on a vehicle's CO2 band.

PHEVDiesel
(~60g/km) Main Pool (~230g/km) Special Rate Pool
18% Per Year 6% Per Year

Also worth noting that businesses can claim their tax relief x3 faster with hybrid vehicles.

Benefit In Kind (BIK)

As of 6th April 2025, Ranger Double Cab pick-ups are classified and taxed as passenger cars no matter what engine type they have.

However, BIK is calculated on a number of different variables:

CO2 emissions
Fuel Type
Electric Range Only
P11D Value

PHEV 2.3lDiesel 2.0l
CO2~60-70g/km ~230g/km
Fuel Type Plug-In Hybrid Petrol Diesel
Electric Range ~27-30 Miles N/A
P11D Value ~£50,000 ~£47,000

PHEV BIK tax: ranges between 14% and 19%, using 16% as an average, and a £50,000 P11D value.

20% Tax40% Tax
£50,000 £50,000
16% BIK 16% BIK
£1,600£3,200

Diesel BIK tax: 37%, £47,000 P11D value.

20% Tax40% Tax
£47,000 £47,000
37% BIK 37% BIK
£3,478£6,956

As you can clearly see from the tables above, you can potentially save over £3,700 a year in tax for a 40% taxpayer with a PHEV.

Fuel Benefit Multiplier (2025/26) £28,000

PHEV (16%)Diesel (37%)
40% taxpayers pay 40% taxpayers pay
£1,804.80 per year£4,173.60 per year


Another bonus of PHEV is that you'll be ULEZ compliant across all UK cities!


The above is provided as a guide only – before committing to a vehicle order, please consult your accountant or other qualified person for advice specific to your circumstances.

For more advice about commercial vehicles and their tax implications for you and your business, contact the team at our nearest convenient Transit Centre to you.


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