UK BENEFIT-IN-KIND ESTIMATOR
Company Car Tax Calculator
Estimate your annual and monthly company car tax using the current HMRC BIK bands, with a transparent calculation breakdown.
CLEAR CALCULATION METHODOLOGY
How company car tax is calculated
A company car available for private use is normally a taxable Benefit in Kind. The benefit is based on the car’s adjusted P11D value and its appropriate percentage, which is usually determined by CO₂ emissions, fuel type, electric range and tax year.
The calculator then applies any qualifying unavailability reduction and private-use payment. Optional employer-provided private fuel is calculated separately using the statutory fuel multiplier.
Company car BIK rates for 2025/26 and 2026/27
The following headline rates apply to petrol and qualifying hybrid cars. Diesel cars that do not meet Euro 6d/RDE2 generally receive a 4-point supplement, capped at 37%.
| CO₂ / electric range | 2025/26 | 2026/27 |
|---|---|---|
| 0g/km | 3% | 4% |
| 1–50g/km, 130+ electric miles | 3% | 4% |
| 1–50g/km, 70–129 miles | 6% | 7% |
| 1–50g/km, 40–69 miles | 9% | 10% |
| 1–50g/km, 30–39 miles | 13% | 14% |
| 1–50g/km, under 30 miles | 15% | 16% |
| 51–54g/km | 16% | 17% |
| 155g/km and above | 37% | 37% |
For a plug-in hybrid with emissions from 1–50g/km, use the official zero-emission mileage or electric range from the appropriate approval documentation. The calculator fills the intervening 5g/km bands automatically.
What does P11D value mean?
The P11D value normally starts with the manufacturer’s UK list price when the car was new. It can include VAT, delivery and qualifying accessories. It is not usually the amount the employer paid after discounts, and a used car normally keeps its original list-price basis.
Usually included
- Manufacturer list price when new
- VAT and relevant taxes
- Delivery charges
- Qualifying optional accessories
Possible reductions
- Employee capital contribution, capped at £5,000
- Qualifying periods when the car was unavailable
- Required payments specifically for private use
Classic cars, cars without an approved CO₂ figure, disabled-driver adjustments, shared cars and optional remuneration arrangements can use special rules. For those cases, enter an official percentage with the manual-rate option and confirm the benefit value separately.
Company car fuel benefit
Private fuel paid by the employer can create a separate taxable benefit unless the employee fully repays the private fuel under the relevant rules. The statutory car fuel benefit multiplier is £28,200 for 2025/26 and £29,200 for 2026/27. The calculator multiplies this figure by the car’s BIK percentage and applies the same availability fraction for an estimate.
Worked company car tax example
This assumes the car is available for the full year, there are no accessories, contributions or private-use payments, and the employer does not provide private fuel.
Company car tax FAQs
How is UK company car tax calculated?
The adjusted P11D value is multiplied by the appropriate Benefit-in-Kind percentage to find the taxable car benefit. Qualifying unavailability and payments specifically required for private use may reduce that benefit. The employee’s marginal Income Tax rate is then applied to the taxable benefit.
What is the P11D value of a company car?
It is generally based on the manufacturer’s list price when new, including relevant taxes, delivery and qualifying accessories. It is not normally the discounted purchase price or the current second-hand value.
What is the electric company car BIK rate for 2026/27?
The appropriate percentage for a zero-emission company car is 4% for the 2026/27 UK tax year. The rate was 3% for 2025/26.
Does the diesel supplement apply to every diesel car?
No. The 4 percentage-point supplement generally applies to diesel cars that do not meet the Euro 6d emissions standard, also known as RDE2. The overall appropriate percentage is capped at 37%.
How does private fuel affect company car tax?
If an employer pays for private fuel and the employee does not fully repay it under the applicable rules, a separate fuel benefit may arise. Its cash equivalent is based on the statutory fuel multiplier and the car’s appropriate percentage.
Can an employee contribution reduce the taxable benefit?
A qualifying capital contribution can reduce the car’s price for the calculation, subject to a £5,000 cap. A payment specifically required for private use can reduce the resulting car benefit, potentially to zero.
Is this calculator an official HMRC calculation?
No. It is an independent estimate based on published HMRC guidance. Salary sacrifice, classic cars, shared cars, disabled-driver rules, cars without approved CO2 figures and other special cases may require the official HMRC calculator or professional advice.
Official sources and review date
Rates and methodology are based on current HMRC and GOV.UK guidance:
- HMRC appropriate percentage tables
- HMRC company car benefit calculation method
- GOV.UK car fuel benefit multipliers
- HMRC employer rates and thresholds
Rates reviewed: 2 October 2026. The plugin does not automatically update when tax law changes.