Company car tax calculator
Estimate the benefit-in-kind (BIK) tax on a company car from its list price, its BIK rate and your income tax band. 2025/26.
Your estimate
Your tax per year
£0
- Taxable benefit (BIK value)
- £0
- Employer Class 1A NIC (15%)
- £0
The BIK percentage depends on the car’s CO₂ emissions and fuel type — for 2025/26 fully electric cars are 3%, with petrol/diesel cars rising to 37%. Enter the right percentage for your car. Employer Class 1A NIC also applies.
In plain English
The terms, explained
New to this? Here’s what the words on this page actually mean.
- Benefit-in-kind (BIK)
- A perk from your employer — here, a company car — that you pay tax on as if it were extra salary.
- P11D value
- The car’s list price including VAT and extras — the figure the tax is based on.
- BIK rate
- A percentage set by the car’s CO₂ emissions: low for electric (≈3%), high for petrol/diesel (up to 37%).
- Class 1A NIC
- National Insurance the employer (your company) pays on the value of the benefit, at 15%.
FAQ
Company car tax calculator — your questions answered
How is company car tax calculated?
Multiply the car’s P11D value by its benefit-in-kind (BIK) percentage — set by its CO₂ emissions — then by your income tax rate. Low-emission and electric cars have a very low BIK rate, which makes them tax-efficient.
How much is company car tax on an electric car?
For 2025/26 the BIK rate on a fully electric car is just 3%. On a £40,000 EV, a higher-rate (40%) taxpayer pays around £480 a year — far less than an equivalent petrol or diesel car.
What is a P11D value?
The car’s list price including VAT, delivery and any optional extras — the figure HMRC uses to work out the benefit. It’s usually a little higher than the price you actually paid.
Is a company car worth it?
For electric and low-emission cars, often yes. For higher-emission cars the tax can outweigh the benefit, and a car allowance or claiming mileage may be better. We’ll compare the options for your situation.
Does my company pay National Insurance on a company car?
Yes — your company pays employer Class 1A National Insurance at 15% on the BIK value each year, which the calculator shows alongside your own tax.
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