💼 Company Car Tax Calculator – Free Online Vehicle Tool
Calculate BIK tax for your company car with UK rates. 100% free, no sign-up required.
BIK Percentage: 0%
BIK Value: £0.00
Annual Tax: £0.00
Monthly Tax: £0.00
How to Use the Company Car Tax Calculator
The Company Car Tax Calculator is a simple yet essential tool designed to help you work out the Benefit-in-Kind (BIK) tax on your company car. Whether you're choosing a new company car or reviewing your current tax liability, this tool gives you accurate results based on UK tax rates.
Step 1: Enter the vehicle list price (P11D value).
Step 2: Enter the vehicle's CO2 emissions in g/km.
Step 3: Select the fuel type (petrol, diesel, electric, or hybrid).
Step 4: Select your tax rate (basic 20%, higher 40%, or additional 45%).
Step 5: Click "Calculate BIK Tax" and the tool will show you the BIK percentage, BIK value, and annual and monthly tax.
Why Use a Company Car Tax Calculator?
Understanding your company car tax liability is essential for:
- Budgeting – know exactly how much tax you'll pay
- Car choice – compare different vehicles before choosing
- Tax planning – understand your tax liability
- Salary sacrifice decisions – know the true cost of a company car
Whether you're an employee or business owner, this tool is essential for understanding your company car tax.
Understanding BIK Tax
Benefit-in-Kind (BIK) tax is the tax you pay on the personal use of a company car. The tax is based on:
- Vehicle list price – the P11D value
- CO2 emissions – higher emissions = higher tax
- Fuel type – electric cars have lower BIK percentages
- Your tax rate – basic, higher, or additional
The BIK percentage is applied to the vehicle list price to calculate the BIK value. You then pay tax on the BIK value at your tax rate.
BIK Percentage by CO2 Emissions
BIK percentages for the current tax year:
- 0 g/km (Electric): 2%
- 1-50 g/km: 2-9%
- 51-75 g/km: 9-12%
- 76-100 g/km: 12-16%
- 101-150 g/km: 16-24%
- 151-200 g/km: 24-32%
- 201+ g/km: 32-37%
These rates are subject to change each tax year. Check HMRC for the latest rates.
Company Car Tax Examples
Here are some typical company car tax examples (based on 40% taxpayer):
- Electric car (£30,000, 2% BIK): £240 per year tax
- Petrol car (£30,000, 120g/km, 24% BIK): £2,880 per year tax
- Diesel car (£35,000, 130g/km, 26% BIK): £3,640 per year tax
- Hybrid car (£32,000, 80g/km, 14% BIK): £1,792 per year tax
These are estimates – use the calculator for an accurate measurement.
How to Reduce Your Company Car Tax
Here are some ways to reduce your company car tax:
- Choose an electric car – lowest BIK percentages
- Choose a hybrid – lower emissions than petrol/diesel
- Choose a lower-emission car – every g/km lower saves tax
- Consider salary sacrifice – can reduce your tax
Frequently Asked Questions
1. What is BIK tax on a company car?
BIK (Benefit-in-Kind) tax is the tax you pay on the personal use of a company car. It is based on the vehicle's list price, CO2 emissions, and your tax rate.
2. How is company car tax calculated?
Multiply the vehicle list price by the BIK percentage, then multiply by your tax rate. Our calculator does this for you automatically.
3. What is the BIK percentage for electric cars?
Electric cars have a BIK percentage of 2% for the current tax year.
4. What is the P11D value?
The P11D value is the list price of the vehicle including optional extras, but excluding the first-year tax and delivery charges.
5. Do I pay tax on a company car if I don't use it for personal travel?
No, if you only use the car for business purposes, you don't pay BIK tax. However, most employees have some personal use.
6. Can I choose my own company car to reduce tax?
Yes, choosing a car with lower CO2 emissions or an electric car will reduce your BIK tax.
7. What is the difference between BIK and company car tax?
BIK is the benefit value, and tax is what you pay on that benefit. Our calculator shows you both.
8. How often do BIK rates change?
BIK rates are usually reviewed annually by the government and can change each tax year.
Related Tools
If you found this company car tax calculator useful, you might also like these related vehicle tools:
- Annual Vehicle Cost – calculate total yearly running costs
- Total Cost of Ownership – compare petrol, diesel, and electric running costs
- Fuel Cost Calculator – calculate fuel costs for any journey
- Running Costs Calculator – calculate cost per mile and yearly running costs