Company Car Tax Calculator
Calculate your Benefit in Kind (BIK) tax on company cars. Compare electric, hybrid and petrol vehicles to find the most tax-efficient option.
Company Car Details
Calculate Benefit in Kind tax for 2025/26
Your BIK Tax
3% BIK rate • 20% tax bracket
BIK Rates 2025/26
Compare company car tax rates by vehicle type (40% taxpayer, £40,000 car)
| Vehicle Type | BIK Rate | Annual Tax* |
|---|---|---|
| Electric (0g/km) | 3% | £480 |
| Hybrid (1-50g/km, 130+ miles) | 5% | £800 |
| Hybrid (1-50g/km, 70-129 miles) | 8% | £1,280 |
| Hybrid (1-50g/km, 40-69 miles) | 12% | £1,920 |
| Petrol 100-104g/km | 26% | £4,160 |
| Petrol 130-134g/km | 32% | £5,120 |
| Petrol 155g/km+ | 37% | £5,920 |
* Based on £40,000 P11D value and 40% tax rate. Diesel cars add 4% (max 37%).
What is Benefit in Kind (BIK)?
When your employer provides you with a company car, HMRC considers this a taxable benefit. The taxable value is calculated based on the car's list price (P11D value) and its CO2 emissions. You pay Income Tax on this benefit through your tax code.
Why Electric Cars Are So Tax Efficient
Electric vehicles have just a 3% BIK rate, compared to up to 37% for petrol/diesel. On a £50,000 car, a 40% taxpayer would pay £600/year for an EV vs £7,400 for a high-emission petrol car. Combined with salary sacrifice schemes, EVs can be virtually free to run.
Salary Sacrifice Company Cars
Many employers offer salary sacrifice schemes for electric cars. You "sacrifice" part of your gross salary to lease an EV, saving Income Tax and National Insurance on that amount. Use our salary sacrifice calculator to see the full benefit.