The world of company cars is a jungle, and the plug-in hybrid (PHEV) is the Tarzan clinging desperately to the fiscal vine. But let’s be honest: that vine is starting to fray. In Belgium, where taxes are a national pastime, it briefly seemed like the PHEV was poised for a glorious comeback. Until Europe blew the whistle and spoiled the party. What’s going on here? And why does it feel like only freelancers are left with anything to gain from these half-electric, half-thirsty machines? Let’s untangle this mess with a hefty dose of sarcasm and a sprinkle of hope.
The PHEV Promise: Golden Mountains or Golden Cage?
Plug-in hybrids were once the darlings of fleet managers. They promised the best of both worlds: electric driving for show and a petrol engine for when you actually needed to get somewhere. Tax-wise, they were a dream. With CO2 emissions on paper lower than a yoga instructor’s breathing, they were 100% deductible for businesses. Freelancers and company bosses rubbed their hands with glee as they parked their PHEVs at the golf club. But like all fairy tales, a big bad wolf showed up – in this case, the European Union.
The Belgian government, led by the ever-optimistic Arizona coalition, thought they’d cracked it. In the Easter Agreement of 2025, they vowed to breathe new life into PHEV tax deductions. Cars emitting up to 50 g/km of CO2 would be 100% deductible again, and those between 51 and 75 g/km would get 75%. Sounds good, right? Until you realize Europe wasn’t on board. With its strict CO2 rules and a Recovery and Resilience Facility (RRF) dangling subsidies like a sword of Damocles over Belgium, the EU said, “Hold up! This smells like delaying the electric revolution.” And so, the tax relaxation for PHEVs was largely tossed in the bin.
Freelancers: The Last Hope for PHEVs?
But wait, there’s a glimmer – or rather, a bedside lamp – of hope for freelancers. The government seems to have found a backdoor. Sole proprietors and company directors might still snag some tax perks. Why? Because Belgium has hundreds of thousands of freelancers still cruising around in old diesel or petrol guzzlers. The government hopes a PHEV might tempt them into a slightly greener choice. The plan is simple: give freelancers a tax break, and maybe they’ll swap their soot-spewing van for a plug-in hybrid they’ll probably never charge.
Let’s crunch some numbers. A PHEV with emissions below 50 g/km can be fully deductible for freelancers until the end of 2027. That covers purchase, maintenance, and even electricity (but not petrol, which is only 50% deductible). For a freelancer using their car privately, the Benefit in Kind (BIK) stays low, as the taxman treats low-emission PHEVs like electric cars. Sounds like a steal, right? Not so fast.
The Euro 6e-bis Norm: The PHEV’s Death Knell?
Here comes a plot twist even M. Night Shyamalan couldn’t dream up. From June 2025, new PHEVs must comply with the Euro6e-bis norm, a tougher CO2 emissions test. The old WLTP test, which made PHEVs shine with their low emissions, is being swapped for a more realistic one. Instead of an 800 km reference distance, the new test uses 2,200 km, and from 2027, 4,260 km. Result? The official CO2 emissions of many PHEVs will double or even triple. A car that now clocks 20 g/km could suddenly hit 60 g/km. Goodbye tax break, goodbye allure.
This means many PHEVs currently deemed “real” hybrids will soon be labeled “fake.” A fake hybrid is a PHEV with a battery too small (less than 0.5 kWh per 100 kg of vehicle weight) or emissions above 50 g/km. These will be taxed like regular petrol cars, with all the downsides that entails. For manufacturers, it’s a disaster. They’ll need to fit bigger batteries to stay under 50 g/km, driving up costs. And let’s be real: who’s going to buy an expensive PHEV when a fully electric car is cheaper and more tax-friendly?
The Reality: Nobody Plugs Them In
Let’s address the elephant in the room: most PHEV drivers rarely charge their cars. It’s an open secret that many leave the charging cable in the boot and run on petrol. The EU has cottoned on, which is why the testing method is getting stricter. In practice, PHEVs often guzzle more than their official figures suggest, especially if you treat them like a regular car with a fancy battery. This makes them less green than they seem, and it’s exactly why Europe wants to phase out tax perks.
For companies, things look even bleaker. The CO2 contribution, which employers pay for company cars used privately, skyrockets for non-electric vehicles. In 2025, it’s multiplied by 2.75, in 2026 by 4, and from 2027 by 5.5. PHEVs get a pass if they fall under the minimum contribution, but with the new testing method, many will overshoot that threshold. Result? A PHEV becomes a costly joke for employers, unless you’re a freelancer dodging the contribution.
The Future: Electric or Bust?
Let’s name the elephant: fully electric vehicles (EVs) are the future. They’re 100% deductible until 2026, then gradually less (95% in 2027, 82.5% in 2028). Their BIK is low, and the CO2 contribution is minimal. Plus, EVs are getting more affordable, with a growing network of charging stations. So why bother with a PHEV? For freelancers in rural areas or without home chargers, a PHEV might still be a transitional option, but even that argument feels flimsy. A PHEV is like a Blackberry in the iPhone era: it works, but you feel a bit daft.
The car industry is split. Some importers, like Mercedes and Volvo, cheer the extended deductions because they still have PHEVs in their lineup. Others, like EV Belgium, see it as a step backward. They argue for investment in charging infrastructure over subsidies for half-baked hybrids. And honestly, who can blame them? A PHEV is a compromise, and compromises are rarely sexy.
Conclusion: One Last Dance for the PHEV
The plug-in hybrid is like a fading rockstar: still in the spotlight for a moment, but the glory days are gone. For freelancers, a PHEV can still be a tax-savvy choice, especially if you order one before 2026 and actually plug it in. But the strict Euro 6e-bis norm and the rise of electric cars make PHEVs increasingly irrelevant. The government is trying to soften the transition, but Europe’s keeping a tight leash. And maybe that’s for the best. The future is electric, and the sooner we embrace it, the better.
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