Company Car Tax Calculator UK
Calculate your Benefit in Kind (BIK) tax for a company car. Estimate your annual and monthly tax liability based on P11D value, CO2 emissions, and income tax band.
Vehicle & Tax Details
Enter your car’s P11D value, BIK percentage, and your tax band to calculate your liability
The list price of the car including accessories and VAT, but excluding the registration fee.
Depends on CO2 emissions. Fully electric cars are 2% (2024/25). High emission petrol/diesel can be up to 37%.
Your marginal income tax rate. This is applied to the taxable benefit amount to find your annual tax.
Company Car Tax Results
Annual and monthly Benefit in Kind tax liability
Enter your vehicle and tax details above, then click Calculate Tax to see your estimated company car tax liability.
UK Company Car BIK Rates 2024/25
The Benefit in Kind (BIK) percentage is determined by your car’s CO2 emissions and its electric range. Use this table to find the correct BIK % for your vehicle.
| CO2 Emissions (g/km) | BIK % | Context / Details |
|---|---|---|
| 0 g/km (Fully Electric) | 2% | Zero emission vehicles. Lowest possible tax rate until 2025/26. |
| 1 – 50 g/km (Hybrid/EV) | 2% – 16% | Depends on electric-only range. >130 miles is 2%, <30 miles is 16%. |
| 51 – 54 g/km | 8% | Typically mild hybrids or very efficient petrol/diesel. |
| 55 – 59 g/km | 12% | Standard efficient combustion engines. |
| 60 – 64 g/km | 16% | Average modern petrol/diesel hatchback. |
| 65 – 69 g/km | 20% | Larger family cars or SUVs. |
| 70 – 74 g/km | 24% | Performance vehicles or large SUVs. |
| 75 g/km and above | 28% – 37% | Increases by 1% for every 5g/km. Capped at the maximum 37%. |
Company Car Tax FAQ
Everything UK employees need to know about Benefit in Kind, P11D values, and how HMRC calculates company car tax.
Company car tax, or Benefit in Kind (BIK), is calculated by multiplying the car’s P11D value by its BIK percentage (based on CO2 emissions). You then pay income tax on that resulting figure at your marginal rate (20%, 40%, or 45%). For example, a £30,000 car with a 2% BIK rate gives a taxable benefit of £600. A basic rate taxpayer would pay £120 a year in tax.
The P11D value is the list price of the car including any accessories, delivery charges, and VAT, but excluding the first registration fee and annual vehicle tax. It is essentially the ‘on-the-road’ price minus the registration fee.
For the 2024/25 tax year, fully electric cars (0g/km CO2) have a BIK rate of just 2%. This is fixed until April 2025, after which it will increase by 1% each year up to a maximum of 37% in 2027/28, before dropping to a permanent 3% floor from 2028/29 onwards.
No, employees do not pay National Insurance on a company car. The employee only pays Income Tax on the Benefit in Kind value. However, the employer must pay Class 1A National Insurance contributions (currently 13.8%) on the taxable benefit value.
If your employer provides the car but you pay for all your private fuel out of your own pocket, you do not have to pay the additional ‘Car Fuel Benefit’ charge. If the employer pays for any private fuel, you will face an additional tax charge based on the same BIK percentage applied to a fixed multiplier (£27,800 for 2024/25).