Company car drivers could make significant savings by opting for the Jazz hybrid over the standard Jazz.

We compared our Jazz long-termer (1.3 IMA HS CVT Auto) with the 1.4 i-VTEC ES CVT Auto using the company car tax calculator on the Fleet News website.

The hybrid has a £2,000 premium (its P11D value is £16,440 compared to £14,440) but it has a clear advantage when it comes to Benefit-in-Kind taxation (£1,644 compared to £2,166). A 20% tax payer will face a £433 tax bill with the standard Jazz while the hybrid is £329.

It’s a slightly different story for the employer, however.

While Class 1A National Insurance is £72 cheaper with the hybrid, and Vehicle Excise Duty is £10 after the first year versus £95 for the standard Jazz, the overall running costs are very similar.

Over 48 months and 80,000 miles the hybrid’s total running cost is £22,264. The standard Jazz is a fraction less (£22,248). The difference is down to depreciation as both SMR and fuel costs are cheaper with the hybrid.

So while the driver benefits by opting for the hybrid the difference for the employer is negligible.

To give drivers a lower cost option though companies should consider putting the hybrid on the choice list. And for some businesses the added benefit will be company image as they may be ‘seen to be green’ by running hybrids.

There is another factor that companies need to bear in mind though - the types of journeys the vehicle will be doing. Hybrids are arguably best suited to urban driving.

To date our long termer has only done a handful of long motorway journeys and the average mpg saw only a mild improvement. In comparison, previous diesel long termers have shown their strength on long journeys.