Company Car Tax (BiK) Calculator 2025-26

Calculate benefit-in-kind tax on your company car based on list price, CO2 emissions and fuel type.

Last updated: April 2026 · Source: GOV.UK — Tax on company benefits

£

Annual Company Car Tax

£1,740.00

£145.00/month

BiK Rate

29%

BiK Value

£8,700.00

Your Tax Rate

20%

Disclaimer

This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.

How It Works

Company car tax is based on the Benefit-in-Kind (BiK) value of the vehicle. HMRC assigns a BiK percentage to each car based on its CO2 emissions and fuel type. For 2025/26, pure electric vehicles have a BiK rate of 3%, while the highest-polluting petrol or diesel cars reach 37%. You pay income tax on the BiK value at your marginal rate.

The BiK value is calculated as: P11D price (list price including options and delivery, minus the first year registration fee and vehicle excise duty) multiplied by the BiK percentage. If the employer also provides free fuel for private use, a separate fuel benefit charge applies based on a fixed multiplier of £27,800 for 2025/26.

Employers pay Class 1A National Insurance at 15% on the full BiK value. This calculator takes the car's list price, CO2 emissions, fuel type and your tax band to show both your annual tax cost and the employer's NI cost.

Example: £35,000 petrol car, 120g/km CO2, higher-rate taxpayer

  1. CO2 emissions 120g/km = BiK rate of 29%
  2. BiK value: £35,000 × 29% = £10,150
  3. Tax at 40% (higher rate): £10,150 × 40% = £4,060 per year
  4. Employer NI (Class 1A): £10,150 × 15% = £1,522.50 per year

Source: GOV.UK — Tax on company benefits

Frequently Asked Questions

What does the Company Car Tax (BiK) Calculator do?
Calculate benefit-in-kind tax on your company car based on list price, CO2 emissions and fuel type. All calculations are performed in your browser using official UK rates and thresholds.
Is this calculator updated for the 2025/26 tax year?
Yes. This calculator uses the latest HMRC rates and thresholds for the 2025/26 UK tax year, which runs from 6 April 2025 to 5 April 2026. Rates are verified against official HMRC publications.
Do I need to tell HMRC about this?
Whether you need to report to HMRC depends on your individual circumstances. If you are unsure, check GOV.UK or contact HMRC directly. This calculator provides estimates for guidance only.