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Your Annual Company Car Tax
£0
0%
BIK Rate
£0
BIK Value
£0
Per Month
£0
Employer Class 1A NI
Frequently Asked Questions
How is company car tax calculated? ▼
Your annual company car tax = P11D value × BIK% × your income tax rate. The BIK% comes from HMRC's CO2 table. Example: £30,000 car, 120g/km (31% BIK), 40% taxpayer: £30,000 × 31% × 40% = £3,720/year.
What is the BIK rate for electric cars in 2026/27? ▼
Pure electric cars attract a BIK rate of 4% in 2026/27. This rises to 5% in 2027/28 and 6% in 2028/29. On a £40,000 EV, a 40% taxpayer pays just £640/year in company car tax — making EVs extremely tax-efficient as company vehicles.
What is the diesel supplement? ▼
Diesel cars not meeting the RDE2 real-world emissions standard pay a 4% surcharge on top of the standard BIK %, up to a max of 37%. Most diesels registered from January 2021 are RDE2-compliant — check your car's documentation or ask your fleet manager.
Is a company car worth it vs a car allowance? ▼
A car allowance is paid as salary — fully taxed at your income tax rate plus NI. A company car is taxed at BIK rates (as low as 4% for EVs). For electric cars, the company car route wins easily. For a high-emission petrol car, a cash allowance plus HMRC mileage claims often works out cheaper.
What is employer Class 1A NI on company cars? ▼
Employers pay Class 1A NI at 13.8% on the BIK value of company cars (and other benefits). So on a £9,000 BIK value, the employer pays £1,242 in Class 1A NI. This is a cost to the business, not the employee.