Company Car Tax Calculator
Work out the Benefit-in-Kind tax on a company car from its list price and CO2 band — electric cars are just 4% in 2026/27.
More options — diesel surcharge, capital contribution, part-year
How to use it
- Enter the list price. Use the P11D value (list price plus options, before discounts).
- Add the BIK band. Enter the appropriate percentage for the car's CO2 — 4% for pure electric.
- See the tax. PayGlance shows your tax, any fuel benefit and the employer's Class 1A.
FAQs
How is company car tax worked out?
List price (P11D) × the appropriate CO2 percentage = the taxable benefit. You pay your marginal rate on that; the employer pays Class 1A NIC.
Why are electric cars so cheap to run as a company car?
Pure-electric cars sit at just 4% BIK in 2026/27, versus up to 37% for high-emission petrol or diesel.
What's the fuel benefit?
If your employer pays for private fuel, a separate taxable benefit applies — often more than the fuel is worth.