UK Company Car Tax Calculator
Estimate company car benefit in kind, private fuel benefit, employee tax, monthly tax cost, and employer Class 1A National Insurance for 2025/26 and 2026/27.
Last Updated: May 2026
Calculate Company Car BIK, Fuel Benefit, and Class 1A NIC
Estimate the cash equivalent of a UK company car, employee tax, private fuel benefit, and employer Class 1A National Insurance.
Tax year and car type
Choose the HMRC company-car tax year.
Controls diesel supplement and electric fuel treatment.
Use only if the official plug-in hybrid easement applies.
Enter the marginal rate applying to the benefit.
P11D price and availability
Manufacturer list price, not discounted purchase price.
Qualifying accessories included in the P11D price.
Capped at £5,000 in the car benefit formula.
Use 365 for a full tax year.
Annual payments made for private use of the car.
Default is 15% for 2026/27.
Emissions and electric range
Use the CO2 value from the car record or certificate.
Required for 1 to 50g/km cars.
Private fuel benefit
Fuel benefit applies only when private fuel is provided and not fully made good.
Use 365 for full-year private fuel, or 0 if none.
Electric and PHEV aware
Uses zero-emission rates and electric-range bands for 1 to 50g/km cars.
Fuel benefit separated
Calculates car and fuel benefits separately so private fuel can be tested cleanly.
Employer NIC included
Shows annual and monthly Class 1A NIC alongside employee tax cost.
UK BIK estimate only
Company car tax depends on the exact HMRC car record, tax year, P11D value, emissions basis, diesel certification, availability, private-use payments, fuel records, payroll method, and the employee marginal tax rate. Verify payroll and P11D reporting with HMRC guidance or an adviser.
Reviewed For Methodology, Labels, And Sources
Every CalculatorWallah calculator is published with visible update labeling, linked source references, and review of formula clarity on trust-sensitive topics. Use results as planning support, then verify institution-, policy-, or jurisdiction-specific rules where they apply.
Reviewed by Iliyas Khan, Chief Operating Officer. Page updated May 2026. Tax, sales tax, insurance, and health calculators are reviewed when rules, rates, eligibility assumptions, healthcare standards, or source references change. Topic ownership: Tax calculators, Sales tax calculators, Insurance calculators, Health calculators.
Tax credentialed review: Named internal reviewer: Iliyas Khan, Chief Operating Officer. External credentialed professional review is still required before this page is treated as professional advice.
Internal tax and sales-tax methodology reviewer. Review scope: calculator assumptions, labels, source context, workflow clarity, and compliance-sensitive disclaimers.
Relevant review context: CalculatorWallah tax and sales-tax calculator workflow owner; Source-first review of IRS, state revenue, rate, and filing-sensitive references; Compliance-sensitive labels, assumptions, and user-facing disclaimer review.
Required professional credentials: CPA, Enrolled Agent, licensed tax professional. Scope: tax formulas, jurisdiction assumptions, withholding language, filing-sensitive examples, and compliance caveats.
This page is educational planning support. A named CPA, EA, or licensed tax professional should review the page before it is positioned as tax advice or used for filing decisions.
Source expectation: Review should cite current IRS, state revenue department, payroll-tax, or official tax authority sources where applicable.
How to Use This Calculator
Start with the car record: tax year, fuel type, list price, accessories, CO2 value, and electric range. For electric cars, enter 0g/km CO2. For plug-in hybrids, electric range matters when CO2 is between 1 and 50g/km.
Enter the employee marginal tax rate rather than annual salary. If you need to work out the marginal PAYE rate first, use the UK PAYE Income Tax Calculator.
Step 1: Choose tax year and fuel type
Select 2025/26 or 2026/27, then choose electric, petrol or hybrid, diesel RDE2, diesel with supplement, or LPG/other.
Step 2: Enter P11D price details
Enter list price, qualifying accessories, employee capital contribution, availability days, and private-use payments.
Step 3: Add CO2 and electric range
Enter CO2 emissions and electric range. For 1 to 50g/km plug-in hybrids, the electric range controls the HMRC percentage.
Step 4: Model private fuel
Choose whether private fuel is provided, fully made good, or not provided, then enter the number of fuel-available days.
Step 5: Review employee and employer cost
Check annual and monthly employee tax, taxable car benefit, fuel benefit, Class 1A NIC, and the audit trail.
How the UK Company Car Tax Estimate Works
The calculator builds the taxable car benefit from the P11D price and HMRC appropriate percentage. It then applies availability, private-use payments, optional fuel benefit, employee marginal tax rate, and Class 1A National Insurance.
| Layer | Rule | Calculator treatment |
|---|---|---|
| P11D value | List price plus qualifying accessories minus employee capital contribution, capped at £5,000. | This is the taxable price used before applying the HMRC percentage. |
| Appropriate percentage | Based on tax year, CO2, electric range, and diesel supplement where relevant. | The calculator caps the final percentage at 37%. |
| Availability | Car benefit can be reduced when the car is unavailable for part of the tax year. | Enter available days from 0 to 365. |
| Private-use payments | Qualifying employee payments for private use reduce the car benefit. | The reduction cannot take the benefit below nil. |
| Fuel benefit | Fuel benefit multiplier multiplied by the same appropriate percentage. | Applies only when private fuel is provided and not fully made good. |
Rules were reviewed in May 2026. For 2026/27, the zero-emission rate is 4%, the fuel benefit multiplier is £29,200, and the default Class 1A NIC rate is 15%.
Company Car Tax, BIK Rates, Fuel Benefit, and P11D Value
What This Calculator Covers
This page fills the UK company car tax keyword gap without duplicating PAYE or National Insurance calculators. It focuses on the benefit itself: P11D value, appropriate percentage, electric range, diesel supplement, private fuel benefit, employee tax cost, and employer Class 1A NIC.
| Car type or rule | 2026/27 treatment | 2025/26 treatment |
|---|---|---|
| Zero-emission car | 4% in 2026/27 | 3% in 2025/26 |
| 1 to 50g/km with 130+ mile electric range | 4% in 2026/27 | 3% in 2025/26 |
| 1 to 50g/km with 70 to 129 mile electric range | 7% in 2026/27 | 6% in 2025/26 |
| 1 to 50g/km with 40 to 69 mile electric range | 10% in 2026/27 | 9% in 2025/26 |
| 1 to 50g/km with 30 to 39 mile electric range | 14% in 2026/27 | 13% in 2025/26 |
| 1 to 50g/km with less than 30 mile electric range | 16% in 2026/27 | 15% in 2025/26 |
| Diesel supplement | +4 percentage points where it applies | Final percentage still capped at 37% |
Private Fuel Benefit Decision
A company fuel benefit can be expensive because the fuel multiplier is multiplied by the same company-car percentage, then taxed at the employee marginal rate. Compare the fuel benefit tax cost against expected private fuel spend before accepting private fuel.
HMRC guidance treats electricity differently for car fuel benefit purposes, so a zero-emission electric car does not create a fuel benefit in this calculator.
Limits and Next Steps
Use the result for car-choice comparisons, payroll planning, or private fuel decisions. Then carry the taxable benefit into broader salary modelling with the Net Salary Calculator or compare PAYE rates with the UK PAYE Income Tax Calculator.
| Limit | Why it matters |
|---|---|
| Payroll timing | The calculator estimates the annual BIK tax cost, not exactly when PAYE collects it through coding or payrolling benefits. |
| Optional remuneration | Salary sacrifice and cash allowance choices can require a separate optional remuneration comparison. |
| Special cars | Classic cars, vans, pooled cars, emergency vehicles, disabled adaptations, and special rules are not modelled here. |
| Marginal rate changes | If the benefit pushes income into a new UK or Scottish tax band, test the calculator using each marginal rate. |
| Private fuel records | Fuel benefit normally disappears only when private fuel is made good in full by the required deadline. |
Keep the research moving with UK PAYE Income Tax Calculator, UK National Insurance Calculator, Net Salary Calculator, and Fuel Cost and Gas Mileage Calculator.
Frequently Asked Questions
Related Calculators
UK PAYE Income Tax Calculator
Estimate PAYE income tax bands after company car benefits are known.
Use UK PAYE Income Tax CalculatorUK National Insurance Calculator
Calculate employee and employer National Insurance separately from BIK tax.
Use UK National Insurance CalculatorNet Salary Calculator
Estimate broader take-home pay after payroll deductions and tax.
Use Net Salary CalculatorFuel Cost and Gas Mileage Calculator
Compare private fuel cost against accepting a company fuel benefit.
Use Fuel Cost and Gas Mileage CalculatorRelated Guides
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- 1.GOV.UK - Company Car Benefit: Appropriate Percentage, 480 Appendix 2(Accessed May 2026)
- 2.GOV.UK - How to Work Out the Benefit of a Company Car, 480 Chapter 12(Accessed May 2026)
- 3.GOV.UK - Taxable Fuel Provided for Company Cars and Vans, 480 Chapter 13(Accessed May 2026)
- 4.GOV.UK - Travel, Mileage and Fuel Rates and Allowances(Accessed May 2026)
- 5.GOV.UK - Rates and Thresholds for Employers 2026 to 2027(Accessed May 2026)