Company car tax calculator UK (2026/27 BIK)
Calculate company car benefit-in-kind (BIK) tax using P11D value and UK income bands. Includes Scottish tax and an electric car preset for 2026/27.
Enter your figures
Estimated extra annual employee Income Tax
Inputs changed. Select Calculate result to update your estimate.
2026/27 standard company-car benefit rules for one car. The zero-emission electric preset uses 4%; for another car enter its HMRC-confirmed percentage, including any diesel adjustment. Do not use for salary-sacrifice/optional-remuneration schemes, shared or classic cars, or specialist adjustments. Chargeable days are not just days driven; some absences shorter than 30 days do not reduce the benefit. Private fuel benefit is separate. Assumes employment income only and standard Personal Allowance, including its taper; excludes student loans, benefit charges, tax-code timing and employer Class 1A NI. Example P11D value and salary are illustrations.
What will a company car cost in employee Income Tax?
A company car benefit increases the income used to work out your tax. The benefit value is not itself the tax bill. This calculator shows both figures and the average monthly tax impact under the standard benefit rules.
Use the P11D value, not the discounted purchase price
Ask the employer or leasing provider for the correct P11D list value, including taxable accessories. Select the zero-emission electric preset or enter the appropriate percentage confirmed for your car by HMRC or payroll. The custom percentage is already expected to include any relevant fuel adjustment.
For employment income, enter the annual amount before Personal Allowance and before adding this car benefit, after any applicable payroll reductions. Select your Income Tax country so the estimate uses the appropriate bands.
Check contributions and periods of availability
Capital contributions towards the car are different from qualifying payments for private use. Enter each in its own field and check that it qualifies. Chargeable days concern availability for private use, not the number of journeys made. Confirm any reduction with payroll.
Electric cars and salary sacrifice are different questions
The electric preset uses the 2026/27 zero-emission benefit percentage. It does not compare lease products or calculate salary-sacrifice savings. Optional-remuneration rules, fuel benefit, student loans and other income can change the wider cost of an arrangement; this tool deliberately isolates standard car benefit and employee Income Tax.
How the company car tax calculator uk (2026/27 bik) works
Deduct qualifying capital contributions up to £5,000 from the P11D value. Multiply by the appropriate percentage and chargeable days ÷ 365, then deduct qualifying private-use payments to a minimum of zero. Extra employee Income Tax = tax on income plus car benefit − tax on income alone. Monthly tax is annual extra tax ÷ 12.
UK data and rules
2026/27 data · Checked 17 October 2026. Rules are a dated snapshot, not a live feed.
- HMRC — Calculate the benefit of a company car
- HMRC — Company car benefit percentages, including 2026/27
- GOV.UK — Tax on company cars
- HMRC — Income Tax rates and allowances
- HMRC — Scottish Income Tax
Read about data coverage and updates
Worked example: company car tax (bik)
This illustration uses the calculator’s example inputs. It is not a quote or a recommended financial decision.
- Annual employment income before Personal Allowance (£)
- 40,000
- P11D list value including taxable accessories (£)
- 40,000
- HMRC-confirmed BIK percentage (custom option only)
- 20
- Qualifying employee capital contribution (£)
- 0
- Qualifying private-use payments for the tax year (£)
- 0
- Chargeable days in the 365-day tax year
- 365
- Country for tax purposes
- England
- Car benefit percentage basis
- Zero-emission electric car — 4% in 2026/27
Estimated extra annual employee Income Tax: £320.00
Deduct qualifying capital contributions up to £5,000 from the P11D value. Multiply by the appropriate percentage and chargeable days ÷ 365, then deduct qualifying private-use payments to a minimum of zero. Extra employee Income Tax = tax on income plus car benefit − tax on income alone. Monthly tax is annual extra tax ÷ 12.
Company car tax (BIK): questions answered
Is BIK value the same as company car tax?
No. BIK is the taxable benefit. The employee tax estimate is the difference between annual Income Tax with that benefit and annual Income Tax without it.
Does it work for Scotland?
Yes. Select Scotland to use the Scottish employment-income tax bands. The standard Personal Allowance taper is included; other income and reliefs are outside this model.
Can I use this to assess a salary-sacrifice car lease?
No. This is a standard car-benefit illustration. Salary sacrifice and optional-remuneration arrangements need a separate comparison and can require different treatment.
Using your result
Example inputs are a starting point. Replace them with your figures and select Calculate result. Results are rounded for display; calculations use unrounded values.
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