Company Car Tax Calculator
Step 1
Select Your Car
Choose Make, Model & Fuel Type — P11D and CO2 will auto-fill from our database.
Step 2
Add Your Tax Band
Select your personal income tax rate to calculate your exact BIK liability.
Step 3
Get Instant Results
See your monthly and annual company car tax liability instantly.
⚠️ Important: This calculator uses estimated P11D values and HMRC BIK rates for guidance only. Always confirm exact figures with your employer or a tax advisor.
📊 Company Car Tax (BIK) Calculator
Search your car below, or enter details manually if your model is not listed.
Input Mode:
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Model
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Fuel Type
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Your Tax Details
Your Income Tax Rate
Your personal tax band
20% — Basic Rate
▼
20% — Basic Rate
40% — Higher Rate
45% — Additional Rate
Capital Contribution
Amount you paid toward car (max £5,000)
£
Your Company Car Tax Liability
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How Company Car Tax (BIK) Is Calculated
Company car tax — officially called Benefit in Kind (BIK) — is calculated using your car's P11D value, its CO2-based BIK percentage, and your personal income tax rate.
BIK Value = P11D Value × BIK % | Annual Tax = BIK Value × Tax Rate | Monthly Tax = Annual Tax ÷ 12
Example Calculation
P11D Value of Car£30,000
CO2 Emissions — 120 g/km petrolBIK Rate: 28%
BIK Taxable Value (£30,000 × 28%)£8,400
Annual Tax @ 20% Basic Rate£1,680 / year
Monthly Tax£140 / month
BIK Rates by Fuel Type (2024/25 – 2026/27)
Full Electric
2%2024/25
3% / 4%
2025/26 / 2026/27
PHEV (70–129mi)
5%2024/25
7% / 9%
2025/26 / 2026/27
Petrol / RDE2 Diesel
25%120 g/km example
2–37%
Range by CO2
Older Diesel
+4%Surcharge on top
Max 37%
Upper cap applies
What Affects Your Company Car Tax?
→P11D value — list price including VAT and factory-fitted options, excluding first year road tax
→CO2 emissions — higher emissions = higher BIK percentage = higher tax bill
→Fuel type — electric cars attract just 2% BIK; older non-RDE2 diesels face a 4% surcharge
→Electric range (PHEV) — longer EV range means lower BIK rate for plug-in hybrids
→Your tax band — a 40% taxpayer pays exactly double compared to a 20% basic rate taxpayer
→Capital contribution — contributing up to £5,000 personally reduces the taxable P11D value
→Tax year — BIK rates increase annually; electric car rates rise from 2025/26 onward
Frequently Asked Questions
Benefit in Kind (BIK) tax is charged on employees who receive a company car for personal use. HMRC treats private use as a taxable benefit, calculated using the car's P11D value and its CO2 emissions-based BIK percentage.
The P11D value is the list price of the car including VAT and factory-fitted options, but excluding first year road tax and the registration fee. It is the base figure HMRC uses to calculate your annual BIK taxable value.
For 2024/25 the BIK rate for fully electric cars is just 2%, rising to 3% in 2025/26 and 4% in 2026/27. On a £40,000 electric car at the 20% tax band, your annual tax would be just £160 in 2024/25 — a major saving versus petrol equivalents at 25%+ BIK.
A 4% diesel surcharge applies to diesel cars that do not meet the RDE2 standard. Most diesels registered after January 2021 are RDE2 compliant and exempt from the surcharge. Check with your dealer if unsure.
Yes — choose a lower-emission or electric car, make a capital contribution of up to £5,000, or opt into a salary sacrifice scheme where available. Choosing a car with a lower P11D value also directly reduces your liability.