💼 Company Car Tax Calculator
If you drive a company car, you'll pay Benefit-in-Kind (BIK) tax — a tax on the value of the car as a benefit. Understanding your BIK liability is essential for financial planning, and with the right information, you could save hundreds or even thousands of pounds each year.
Our Company Car Tax Calculator helps you work out exactly how much BIK tax you'll pay on any vehicle. The calculation depends on three key factors:
- 💰 P11D Value — The list price of the car including VAT and options.
- 🌿 CO₂ Emissions — The official CO₂ figure from the V5C logbook.
- 📊 Your Tax Band — Basic (20%), Higher (40%), or Additional (45%).
The BIK rate is based on CO₂ emissions, with electric vehicles currently enjoying the lowest rates (2% in 2024/25). With our calculator, you can compare petrol, diesel, hybrid, and electric vehicles side by side to see which is cheapest for tax purposes.
💡 Pro Tip: Electric vehicles have the lowest BIK rates — as low as 2% in 2024/25, rising to 3% in 2025/26. If you're choosing a company car, this could save you thousands of pounds compared to a petrol or diesel alternative.