მთავარი მიღებული
- 01BIK tax is calculated as: P11D value × appropriate BIK percentage × your marginal income tax rate.
- 02Zero-emission company cars have a 4% BIK rate for 2026-27, making them significantly cheaper than combustion-engine alternatives.
- 03Plug-in hybrid BIK rates depend on the official electric range, with longer-range PHEVs attracting lower percentages.
- 04The calculator shows annual tax and a monthly equivalent, making it easy to compare the net cost of different company car choices.
Why Calculate BIK Before Choosing a Company Car
A company car that looks attractive on its spec sheet can have a very different monthly cost depending on its CO2 emissions, P11D value, and your income tax rate. The BIK percentage for the 2026-27 tax year varies widely across the CO2 range — from the 4% rate for fully electric cars to significantly higher percentages for higher-emission vehicles — and that difference translates directly into employee tax.
Comparing the monthly BIK cost of an electric car against a petrol equivalent, or evaluating whether a plug-in hybrid's lower percentage justifies a higher P11D, takes only seconds with a purpose-built tool. Handytool's company car tax calculator handles all three fuel types and income tax rates without requiring an HMRC login.
How to Use the UK Company Car Tax Calculator
Four inputs give you annual and monthly tax figures.
- 01
Enter the P11D value
This is the list price of the car plus options, excluding the first-year registration fee and annual road tax. It appears on your company's P11D form.
- 02
Enter CO2 and fuel type
Enter the official WLTP CO2 figure and select petrol, diesel, plug-in hybrid, or zero-emission. For PHEVs, also enter the official electric range.
- 03
Select your income tax rate
Choose 20%, 40%, or 45% depending on your marginal rate for the year. This determines the employee tax amount.
- 04
Read the breakdown
The calculator shows the BIK percentage, taxable benefit, annual employee tax, and monthly equivalent — all from a single calculation.
What to Prepare Before Calculating
- 01P11D value from the company's benefits documentation or manufacturer quote
- 02Official WLTP CO2 in g/km from the spec sheet
- 03Fuel type: petrol, diesel, PHEV, or zero-emission
- 04Official electric range for PHEVs (zero-emission miles)
- 05Your marginal income tax rate: 20%, 40%, or 45%
Private Browser Calculation
The calculation runs entirely in your browser. Your P11D value, income tax rate, and CO2 figure are never stored or transmitted. Handytool does not need an account or HMRC credentials.
This is an unofficial planning tool based on published HMRC BIK percentages for 2026-27. For your official tax liability, refer to your P60 or consult a tax adviser.
UK Company Car Tax Calculator FAQ
How is UK company car tax calculated?
P11D value is multiplied by the appropriate BIK percentage for the car's CO2 and fuel type. The resulting taxable benefit is multiplied by your marginal income tax rate.
What is the BIK rate for an electric company car in 2026-27?
For zero-emission company cars the appropriate percentage is 4% in 2026-27.
How do plug-in hybrid BIK rates work?
For cars emitting 1-50 g/km CO2, the BIK percentage depends on the official zero-emission electric range: longer electric range means a lower percentage.
Does the calculator include employer National Insurance?
No. It estimates the employee income tax cost only. Employer Class 1A NIC is a separate calculation based on the same taxable benefit.
Is my P11D value saved anywhere?
No. The calculation is local to your browser and does not upload the vehicle value, tax rate, or any other input.