If you're looking at ordering a plug-in hybrid (PHEV) through your salary sacrifice or employee benefit scheme, there's a new emissions standard to be aware of - Euro 6e-bis. It’s designed to support cleaner, greener driving, so it’s something to factor in as you explore your low-emission vehicle options.

What is Euro 6e-bis?

In simple terms, it's an updated version of the existing Euro 6 emissions rules. It's being introduced to make sure that vehicles perform as cleanly on the road as they do in the lab. The big change here is how emissions are tested. PHEVs will now be put through much longer real-world tests. Previously, the standard testing distance was 497 miles. Under Euro 6e-bis, that jumps to 1,367 miles – almost a threefold increase.

Why does this matter?

Because over a longer journey, PHEVs rely more on their petrol or diesel engines than their electric motors. Naturally, this leads to higher emissions, and that's reflected in the new test results.

When will Euro 6e-bis come in?

This revised emissions test won't be used for official type approval until 2026 at the earliest, following a consultation by the Department for Transport. However, the HMRC has confirmed it will use the Euro 6e-bis test results for benefit-in-kind (BIK) tax purposes from April 2026. That means the significantly higher CO₂ figures produced under this stricter testing regime will directly influence BIK tax bands applied to new company cars. 

What does this mean for salary sacrifice drivers?

As mentioned earlier, Euro 6e-bis might push certain PHEVS out of their previous thresholds for emissions, which is likely to impact their BIK tax status from April 2026. For example, a vehicle that currently emits 30g/km might see its figure double to 60g/km, shifting it from a 9% to a 24% BIK rate. This could, in theory at least, make it more expensive to drive through a BIK or salary sacrifice scheme. That said, it doesn't mean PHEVS are off the table, but it does mean new drivers need to seek expert advice when choosing a model, especially after April 2026.

Do current PHEV drivers need to worry?

No. If you're already driving a PHEV through your salary sacrifice scheme, you're fine. HM Treasury has confirmed that there will be no retrospective changes to CO₂ values or tax treatment. The issue only affects new orders that may fall under the Euro 6e-bis standard.

Stay informed with the latest driving insights.

We stay in close communication with manufacturers and the industry as a whole to keep you informed of the latest re-testing timelines and any CO₂ figure changes. If you're planning to order a PHEV soon, we recommend getting in touch with our consumer team sales executives.  They’re experts when it comes to cars, specs, and options available, so they can guide you through your options.

For more general information, you can find out more about our employee benefit schemes here or get in touch with our team today.

FAQs

What is Euro 6e-bis?

Euro 6e-bis is an updated emissions standard designed to reflect real-world driving more accurately, especially for plug-in hybrids.

Who will Euro 6e-bis affect?

It affects manufacturers, fleet providers, and drivers ordering new PHEVs, particularly where CO₂ emissions are a factor in tax or scheme eligibility.

Why do CO₂ figures matter for salary sacrifice?

Salary sacrifice schemes typically require vehicles to emit 75g/km of CO₂ or less to qualify for tax benefits.

Could a vehicle's CO₂ rating change after I order it?

Yes. If a car is built after re-homologation under Euro 6e-bis, its CO₂ figure might increase even if it was lower when ordered.

Will my current vehicle be affected?

No. Euro 6e-bis does not apply to vehicles that are already registered or in use.