UK-specific tool

What will a company car actually cost you in tax?

Work out your Benefit in Kind (BIK) tax bill for 2026/27, based on the car's value, emissions, and your income tax rate.

Rates checked against HMRC 2026/27 WLTP bands (October 2026). For plug-in hybrids, use the vehicle’s official electric-only range; for diesel, check RDE2 certification. The 4% diesel supplement can have exceptions. This estimate assumes a full tax year and no private-use contributions.

This calculator is UK-specific — company car tax rules and rates don't apply the same way outside the UK, so there's no region switcher on this page.

Life Figured — lifefigured.com

Company car tax (2026/27)

Figures are based on HMRC's published Benefit in Kind rates for the 2026/27 tax year.

P11D value List price including VAT, delivery, and accessories

Fuel type Diesel supplement doesn't apply if RDE2 certified

CO2 emissions Grams per km (g/km) — check your V5C or manufacturer spec. Leave at 0 for fully electric.

Electric-only range Miles — only affects the result for plug-in hybrids with CO2 of 50g/km or below

Your income tax rate 20% basic, 40% higher, 45% additional

Appropriate (BIK) percentage—

Taxable benefit value—

Employer's Class 1A NIC (15%)—

Your annual tax—

Your monthly tax—

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Frequently asked questions

What is BIK (Benefit in Kind) tax?

It's UK tax charged on the value of a company car provided for personal use, calculated as a percentage of the car's list price based on its CO2 emissions.

Does this calculator account for electric vehicles?

Enter the appropriate BIK percentage for your specific vehicle — EVs typically have significantly lower rates than petrol or diesel cars, so check the current rate from HMRC's published bands.

Who pays the Class 1A National Insurance shown here?

That's paid by your employer, not you directly — it's shown here so you can see the full cost picture of providing the car.

Official sources & further reading

Explore independent and official explanations alongside Life Figured’s illustrative tools.

External websites open in a new tab. Life Figured is independent and is not affiliated with, approved or endorsed by these organisations. Check current rules directly with the source.

TRANSPARENT CALCULATIONS

How we calculate this

Estimates taxable company-car benefits from the vehicle list price, relevant benefit-in-kind percentage and your tax assumptions. UK rules and vehicle classifications can change. Tax-year setting: UK 2026/27 (as stated in the calculator). Check the official sources for subsequent changes.

Sources and further reading: HMRC company cars

Methodology note added October 2026 · Prepared by Adam, founder of Life Figured · General educational estimates, not personalised financial advice. Rates and thresholds should be checked with official sources before making decisions.

What will a company car actually cost you in tax?

Company car tax (2026/27)

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How we calculate this