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Vehicles · 2025/26 rates

Company Car BIK Tax Calculator

A company car you can use privately is taxed as a benefit. The taxable amount is list price × BIK% (set by CO₂ emissions). EVs get just 3% in 2025/26.

£
g/km

Annual tax on benefit

£4,200

£350/month — BIK rate 30%

Breakdown

  • Cash equivalent
    £10,500
  • Tax due
    £4,200

How we calculated your result

Cash equivalent = P11D list price × BIK%. We multiply that by your marginal tax rate. Diesel cars not meeting RDE2 add a 4% supplement (capped at 37%).

Official UK rules in simple English

  • EV BIK rate: 3% in 2025/26 (rising 1pp/year to 9% by 2029/30).
  • Petrol BIK scales by CO₂ from 15% (≤50g) to 37%.
  • Salary sacrifice schemes still attractive for EVs.
  • Fuel benefit charge separate if employer pays for private fuel.

Common pitfalls to watch out for

  • ⚠ Diesel supplement

    Most diesels add 4pp — confirm RDE2 certification to avoid.

  • ⚠ List price, not paid price

    BIK uses P11D (RRP + options + VAT), even if the company got a fleet discount.

  • ⚠ Private fuel pays more tax than it’s worth

    Employer-paid private fuel triggers a separate large BIK — almost never beneficial unless you do massive private mileage.

Frequently asked questions

Hybrid rates?
PHEV BIK depends on CO₂ and electric range — anywhere from 5% to 15%.
What if I pay for personal contributions?
Reduces the cash equivalent £-for-£.

Educational. BIK tables change each tax year — confirm via HMRC.

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