Free Tool · HMRC BIK Rates
Company Car Tax Calculator
Compare the Benefit-in-Kind tax on two vehicles side by side and see the yearly and monthly cost — including how the gap changes as rates shift year to year.
Car A
List price + options over £100, excluding VED/first-reg fee
Car B
List price + options over £100, excluding VED/first-reg fee
Figures are estimates based on HMRC's published appropriate percentage table and confirmed rates to 2029/30. Always verify the current appropriate percentage for your vehicle at gov.uk and confirm your P11D value and tax band with your employer or HMRC. This tool does not constitute tax advice. Claims and benefits are subject to your employer's policies and HMRC rules. The £40,000 expensive car supplement applies to Vehicle Excise Duty, not BIK — it is not included in these calculations.
Frequently asked questions
How company car tax is calculated
Company car tax — formally called Benefit-in-Kind (BIK) tax — is charged on the private use benefit of a company-provided car. The annual tax is calculated as: P11D value × appropriate percentage × your marginal income tax rate.
The appropriate percentage is set by HMRC each tax year and depends on the car's CO2 emissions and fuel type. Electric vehicles get the lowest rate because of their zero tailpipe emissions — and HMRC has confirmed the EV rates all the way to 2029/30, so you can model the cost over several years with certainty.
The multi-year comparison is the most useful feature: EV rates rise from 4% in 2026/27 to 9% in 2029/30, while petrol rates stay relatively flat. This means the tax gap between an EV and a petrol car narrows over time. This tool makes that visible.
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