Company Car Tax Calculator
Calculate your company car tax (benefit in kind) based on vehicle cost, CO2 emissions, and tax year.
How Benefit-in-Kind (BiK) Car Tax Works
If your employer provides you with a company vehicle that you can use privately, this is considered a 'perk' or Benefit-in-Kind (BiK) by HMRC. You must pay income tax on the value of this benefit, which is deducted straight from your salary through your tax code.
The tax amount is calculated using the car's P11D value (list price plus options), its CO2 emissions, and your personal income tax bracket. The higher the emissions and the higher your tax bracket, the more company car tax you pay.
Frequently Asked Questions
Why is a hybrid company car tax calculator so important?
For hybrid vehicles, BiK tax rates depend not just on CO2 emissions, but also on the car's zero-emission electric range. A plug-in hybrid with an electric range of over 130 miles falls into an ultra-low tax bracket, whereas a mild hybrid is taxed heavily like a standard petrol car.
Is an electric company car worth it?
Absolutely. Fully electric vehicles currently enjoy exceptionally low BiK tax rates (fixed at 2% until April 2026, rising by 1% annually thereafter). Choosing an EV over a combustion engine car can easily save a higher-rate taxpayer thousands of pounds per year in company car tax.