Company Car Tax Calculator UK 2026/27 (BIK Rates)

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Formula at a glance

UK Company Car Tax Calculator: Taxable benefit — (list price − contribution) × BIK % − private-use payments. Example: £45,000 electric car, 40% taxpayer → Company car tax a year: £720.00 — How the UK Company Car Tax Calculator works: Taxable benefit — (list price − contribution) × BIK % − private-use payments

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📘 About the UK Company Car Tax Calculator 2026/27

A company car is a taxable benefit. Its value is the P11D list price multiplied by a benefit-in-kind (BIK) percentage set by CO₂ emissions. For 2026/27 electric cars are 4%, plug-in hybrids 4% to 16% depending on electric range, and petrol cars up to 37%. Diesels that are not RDE2 add 4%.

You pay income tax on the benefit at your marginal rate, and your employer pays 15% Class 1A National Insurance. Free private fuel adds £29,200 × the BIK percentage.

🧮 Formula

Taxable benefit

(list price − contribution) × BIK % − private-use payments

Your tax

benefit × your tax rate

✏️ Worked examples

£45,000 electric car, 40% taxpayer

You enter
P11D list price	45,000 £
Fuel	Electric
CO₂ emissions	0 g/km
Electric range (1–50 g/km hybrids)	0 miles
Your income tax rate	40% higher
Your capital contribution (max £5,000)	0 £
You pay for private use (a year)	0 £
Free fuel for private use?	No

You get
Company car tax a year	£720.00
A month	£60.00
Benefit-in-kind rate 2026/27	4%
Taxable benefit (car)	£1,800
Employer Class 1A NI (15%)	£270.00 a year

£60.00.

£30,000 petrol car, 128 g/km, 20% taxpayer

You enter
P11D list price	30,000 £
Fuel	Petrol, hybrid or RDE2 diesel
CO₂ emissions	128 g/km
Electric range (1–50 g/km hybrids)	0 miles
Your income tax rate	20% basic
Your capital contribution (max £5,000)	0 £
You pay for private use (a year)	0 £
Free fuel for private use?	No

You get
Company car tax a year	£1,860.00
A month	£155.00
Benefit-in-kind rate 2026/27	31%
Taxable benefit (car)	£9,300
Employer Class 1A NI (15%)	£1,395.00 a year

£155.00.

🧭 How to use this calculator

What you enter

P11D list price (£)
Fuel
CO₂ emissions (g/km)
Electric range (1–50 g/km hybrids) (miles)
Your income tax rate
Your capital contribution (max £5,000) (£)
You pay for private use (a year) (£)
Free fuel for private use?

What you get

Company car tax a year
A month
Benefit-in-kind rate 2026/27
Taxable benefit (car)
Employer Class 1A NI (15%)

❓ Frequently asked questions

What is the BIK rate for electric cars in 2026/27?

4%, rising to 5% in 2027/28, 7% in 2028/29 and 9% in 2029/30.

How much tax will I pay on a £40,000 electric company car?

£40,000 × 4% = £1,600 benefit. A basic-rate taxpayer pays £320 a year (£26.67 a month); a higher-rate taxpayer £640.

Is a hybrid company car worth it?

Only if it has a long electric range. Hybrids with 70–129 miles are taxed at 7%, but those with under 30 miles are taxed at 16%.

Who pays Class 1A NI?

The employer, at 15% of the taxable benefit, usually paid by 22 July after the tax year.

🚘 UK Company Car Tax Calculator 2026/27 (BIK)