Company Car Tax Calculator
Your company car
Not the lease payment, used-car price or employer’s discounted purchase price.
Euro 6d / RDE2 status is often on the V5C registration document or the DVLA vehicle enquiry service for cars registered from September 2018.
Used to estimate additional Income Tax, including band crossings and Personal Allowance taper.
Enter the list / P11D price and your employment income to estimate Benefit in Kind, additional Income Tax and employer Class 1A NIC.
What company car BIK is
A company car made available for private use is a taxable Benefit in Kind. The cash equivalent is based on the price used for company-car tax and an HMRC appropriate percentage. That taxable benefit is not the same as the Income Tax you pay. See Benefits in Kind Explained.
How the appropriate percentage works
HMRC publishes year-specific percentages by CO₂ emissions and, for 1–50 g/km cars, electric range. Ordinary CO₂ bands use HMRC’s five-gram rounding where relevant, and the final percentage is capped at the statutory maximum for the tax year.
Electric cars
Fully electric cars are treated as 0 g/km. For 2025/26 the base rate is 3% and for 2026/27 it is 4%. Electricity is not fuel for the statutory car fuel benefit charge.
Plug-in hybrids and electric range
For cars in the 1–50 g/km band, electric range sets the appropriate percentage. Plug-in hybrids generally need both the quoted CO₂ figure and electric range.
2025–2028 PHEV emissions easement
Where HMRC’s temporary plug-in hybrid easement conditions are met, the calculator uses a deemed CO₂ of 1 g/km for BIK while still using electric range for the percentage, and shows both quoted and effective CO₂ in the breakdown.
Diesel supplement / RDE2
A 4 percentage-point diesel supplement applies only where HMRC requires it. Diesel cars certified to Euro 6d / RDE2, and hybrid cars treated as type A rather than diesel-only cars, do not take that diesel-only supplement.
Employee capital contributions
A qualifying employee capital contribution can reduce the price used for BIK, capped at £5,000. Recurring payments for private use are a separate deduction and are not the same as a capital contribution.
Periods when the car is unavailable
Qualifying unavailability normally means at least 30 consecutive days. Being abroad, ill or unable to drive is not automatic unavailability. The breakdown shows available days against tax-year days.
Private-use payments
Payments required specifically for private use can reduce the car cash equivalent after availability adjustments, but cannot create a negative benefit. Not every payment connected with a company car qualifies.
Company car fuel benefit
Where private fuel is provided for petrol, diesel or hybrid cars, the statutory fuel benefit uses the year’s fuel multiplier and the same appropriate percentage as the car. The full-year figure is reduced for days the car is unavailable, and can be reduced further where free fuel is finally withdrawn and not reinstated later in the same tax year. Starting free fuel partway through the year does not by itself create an equivalent part-year reduction. Fully making good private fuel under HMRC’s rules makes the fuel benefit nil; partial repayment does not reduce the charge pound-for-pound.
Employer Class 1A NIC
Employers generally pay Class 1A National Insurance on the taxable company-car and fuel benefits. This calculator shows an estimate at the configured Class 1A rate and does not model lease cost, VAT or capital allowances. See Employer National Insurance.
Salary sacrifice / OpRA
Cars at no more than 75 g/km are generally outside the Optional Remuneration Arrangement comparison and continue under normal car BIK rules. Cars above 75 g/km can require comparison with salary or cash pay foregone. Sorvuna currently models the normal company-car BIK rules rather than a full OpRA valuation — including for many EV salary-sacrifice arrangements that still use ordinary car BIK.
Calculator limitations
Pre-1998 cars, cars without approved CO₂, classic-car, disabled-driver and shared-car special rules, pool cars, multiple cars at once, vans and employer ownership-cost analysis are outside this version. Figures are estimates and general information, not tax, legal or financial advice and not an HMRC-approved payroll result.
Frequently asked questions
What does this Company Car Tax Calculator estimate?
It estimates the taxable company-car Benefit in Kind, any statutory car fuel benefit, the additional employee Income Tax that benefit may cause, and employer Class 1A National Insurance. The taxable benefit is not the same as the tax bill.
Which tax years are supported?
Fully calculated tax years are 2025/26 and 2026/27, defaulting to 2026/27. Later years are not selectable until matching Income Tax, Class 1A and fuel-multiplier configuration is available.
How is the appropriate percentage calculated?
The calculator uses HMRC’s published company-car appropriate percentage tables for the selected tax year, including electric-range bands for 1–50 g/km cars, five-gram banding, the diesel supplement where required, and the statutory maximum percentage.
What is the plug-in hybrid easement?
For qualifying plug-in hybrids first registered from 1 January 2025 and before 6 April 2028 under newer emissions testing, HMRC can treat CO₂ as 1 g/km for BIK while electric range still sets the 1–50 g/km percentage. Quoted and effective CO₂ are both shown when the easement applies.
Does electricity create a car fuel benefit?
No. HMRC does not treat electricity as fuel for the statutory car fuel benefit charge, so fully electric company cars do not generate that fuel benefit in this calculator.
Is employee National Insurance charged on company-car BIK?
No. This calculator estimates additional Income Tax only. Employee Class 1 National Insurance is not charged on company-car Benefit in Kind.
Does this calculator model salary sacrifice / OpRA?
No. Cars at no more than 75 g/km are generally outside the Optional Remuneration Arrangement comparison and continue under normal car BIK rules. Cars above 75 g/km can require comparison with salary or cash pay foregone. Sorvuna currently models the normal company-car BIK rules rather than a full OpRA valuation.
What is outside the scope of this calculator?
Pre-1998 cars, cars without approved CO₂, classic-car, disabled-driver and shared-car special rules, pool cars, multiple cars at once, vans, and employer ownership-cost analysis are not modelled.
Official sources
- Tax on company cars (GOV.UK)
- Company car benefit — the appropriate percentage (480 Appendix 2) (GOV.UK)
- How to work out the benefit of a company car (480 Chapter 12) (GOV.UK)
- EIM24705 — Ready reckoner of appropriate percentages (HMRC)
- EIM24710 — PHEV easement from 1 January 2025 (HMRC)
- Taxable fuel provided for company cars and vans (480 Chapter 13) (GOV.UK)
- EIM25565 — Car fuel benefit: reduction if car unavailable (HMRC)
- EIM25570 — Car fuel benefit: reduction if fuel withdrawn and not reinstated (HMRC)
- EIM25610 — Car fuel benefit example: fuel withdrawn and not reinstated (HMRC)
- Travel — mileage and fuel rates and allowances (GOV.UK)
- Rates and thresholds for employers 2025 to 2026 (GOV.UK)
- Rates and thresholds for employers 2026 to 2027 (GOV.UK)
- Expenses and benefits for employers (GOV.UK)
- Income Tax rates and Personal Allowances (GOV.UK)
- Scottish Income Tax (Scottish Government)
Figures are estimates for general information and planning. They may differ from P11D, payroll or adviser software. This is not tax, legal or financial advice.
Related guides
- Benefits in Kind ExplainedOverview of taxable employer benefits, Class 1A National Insurance, payrolling and P11D.Read guide
- PAYE ExplainedHow Pay As You Earn collects Income Tax and National Insurance through your employer.Read guide
- Employer National Insurance ExplainedHow employer Class 1 National Insurance is calculated and how it affects the total cost of employment.Read guide
- Salary Sacrifice ExplainedHow salary sacrifice pensions reduce taxable pay and National Insurance, and what to check before agreeing.Read guide
- Income Tax Bands ExplainedPersonal Allowance, basic, higher and additional rates — and how Scotland differs.Read guide
Related calculators
- Income Tax CalculatorEstimate take-home pay, Income Tax and employee National Insurance from a gross salary — with optional pension and student loan settings.Open calculator
- Net to Gross Salary CalculatorWork backwards from a target take-home figure to find the gross salary (and employer cost) you would need.Open calculator
- Director Salary and Dividend CalculatorCompare salary and dividend extraction routes, including Corporation Tax and director National Insurance.Open calculator
- Corporation Tax CalculatorEstimate UK Corporation Tax using accounting profit, tax adjustments, associated companies and your accounting period.Open calculator
Part of the Employment tax hub.