Is this calculator updated for the 2026/27 tax year?

Yes, all calculators are fully updated with the latest HMRC thresholds, personal allowances, and National Insurance rates for 2026/27.

Can I use this for official tax submissions?

These tools are for estimation and illustrative purposes only. For official tax returns, please consult a qualified accountant or reference HMRC directly.

Free Company Car Tax Calculator 2026/27: BIK Rates & P11D Value

Company Car Tax & BIK Calculator

✓ Updated for HMRC 2026/27 Rates

Quick Select Vehicle Presets:

Vehicle & Driver Details

Car List Price (P11D Value)

Includes options, VAT & delivery; excludes 1st year VED & registration fee.

Fuel Type

CO2 Emissions (WLTP g/km)

g/km

Electric Zero-Emission Range (Miles)

Employee Capital Contribution (Max £5,000)

Directly reduces taxable P11D value by up to £5,000.

Your Annual Gross Salary

Employer provides Free Fuel for Private Mileage Adds HMRC Fuel Benefit (£28,200 × BIK %).

Apply Scottish Income Tax Bands (19% / 20% / 21% / 42% / 45% / 48%)

Compare with Cash Car Allowance

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2026/27 BIK Rules: Pure EVs are taxed at only 3% BIK. Petrol & diesel cars range from 15% up to 37%. Benefit values are collected automatically via your PAYE tax code.

Annual Tax Due

£540

total company car tax

Monthly Deduction

£45.00

PAYE tax code impact

BIK Percentage

2026/27 HMRC band

Taxable Benefit

£1,350

reportable P11D amount

BIK & Tax Breakdown

Car List Price (P11D) £45,000

Capital Contribution Offset -£0

BIK Percentage Band 3%

Car Taxable BIK Value £1,350

Fuel Benefit Value (£28,200) £0

Marginal Tax Band Basic Rate (20%) / Higher (40%)

Annual Tax Payable £540

Employer & Allowance Analysis

Employer Class 1A NIC (15.0%) £202.50 / yr

PAYE Code Adjustment -135 points

Essential Company Car & Vehicle Tax Guides

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Verified for Accuracy (2026/27 Tax Year)

Fact-checked and audited by David Vance, CTA FCA, Chartered Tax Advisor & Accountant. Verified against official HMRC rules.

How We Calculated This

Input variables: Enter the relevant amounts, rates, or percentages in the form.
Real-time breakdown: The calculator applies HMRC rules and thresholds for the 2026/27 tax year to process the values.
Display outputs: The visual graphs, donut charts, and tables are compiled dynamically to show your net take-home and deductions.

Real-World Examples

Standard Scenario

A basic calculation applying standard UK tax bands and allowances.

Calculation runs based on standard HMRC rules.

With Pension or Deductions

Factoring in a percentage of salary sacrifice or pension contributions.

Deductions are calculated and adjusted accordingly.

Related Calculators

Frequently Asked Questions

How is company car tax calculated in the UK?

Company car tax is calculated as a Benefit in Kind (BIK). To find the taxable value, you multiply the car’s list price (known as the P11D value, which includes options, VAT, and delivery charges but excludes road tax) by a BIK percentage that is determined by the car’s CO2 emissions. This BIK value represents the benefit’s taxable worth. Your employer reports this on a P11D form, and you pay tax on this value at your marginal personal income tax bracket (20% basic, 40% higher, or 45% additional rate). For example, if a car has a P11D value of £30,000 and a BIK band of 20%, the BIK value is £6,000. A higher-rate (40%) taxpayer will pay £2,400 per year in tax (£200 per month deducted from their tax code).

Why are electric vehicles (EVs) highly tax-efficient company cars?

HMRC applies extremely low BIK rates to zero-emission electric vehicles to encourage businesses to transition to green fleets. For the 2026/27 tax year, the BIK rate for pure electric cars is set at just 2% to 3%. This means a £50,000 electric company car has a BIK value of only £1,000. A higher-rate (40%) taxpayer will pay a mere £400 in tax per year (£33.33 per month) to drive a brand-new EV. In contrast, standard petrol or diesel cars can face BIK bands up to 37% based on their CO2 output, costing the same taxpayer over £7,000 in tax annually. Furthermore, companies can deduct 100% of the cost of new electric vehicles against their profits in the first year using capital allowances.

UK Company Car Tax (BIK) Calculator: Electric, Hybrid & Petrol Rates