Company Car BIK Tax Calculator
Enter your company car's P11D value, CO2 emissions, and fuel type to see your BIK rate, annual taxable benefit, and the tax you will pay each month.
Frequently asked questions
What is BIK tax on a company car?
Benefit-in-kind (BIK) tax is the tax you pay for receiving a company car as part of your employment package. HMRC calculates the taxable benefit as a percentage of the car's P11D value, based on its CO2 emissions and fuel type. You then pay income tax on that amount.
What is the BIK rate for electric cars in 2026/27?
The BIK rate for fully electric vehicles (0 g/km CO2) is 2% in 2026/27. It is set to rise to 3% in 2027/28 and 4% in 2028/29, still far lower than petrol or diesel rates which range from 15% to 37%.
What is the diesel surcharge?
Diesel vehicles that are not RDE2 compliant face a 4% surcharge on their BIK rate, capped at a maximum of 37%. Most new diesels manufactured after September 2017 meet RDE2 standards. If your car is registered after April 2018, it is likely compliant.
How is P11D value calculated?
P11D value is the car's list price (including VAT) plus delivery charges and any factory-fitted or dealer-fitted options, minus any capital contribution you make towards the cost. It does not include the first year's road tax (VED) or the registration fee.
Do I pay BIK tax on a salary sacrifice car?
Yes. A salary sacrifice car is treated as a company car for tax purposes, so you pay BIK tax. However, because your salary is reduced, you also save income tax and NI on the sacrificed amount — which usually far outweighs the BIK tax, especially for EVs.
These calculations are estimates based on 2026/27 HMRC and DVLA rates. Speak to a lender or qualified financial adviser for a personalised quote.