Question 1

How is company car tax worked out?

Accepted Answer

Your taxable car benefit is the adjusted P11D value multiplied by the BIK percentage, adjusted for availability and qualifying private-use payments. Add any taxable private fuel benefit, then apply your income tax rate.

Question 2

What is the P11D value?

Accepted Answer

It is the car’s list price when new, including qualifying options, VAT and delivery, excluding the first registration fee and VED. Use this value even for a used car; it is not its current market value.

Question 3

How much tax on an electric company car?

Accepted Answer

The electric car BIK rate is 4% in 2026/27 and 5% in 2027/28. With a £45,000 P11D value, full-year availability, no contributions and a 20% income tax rate, that is £30 a month in 2026/27 and about £38 in 2027/28.

Question 4

Is free fuel worth it?

Accepted Answer

Compare the tax on the fuel benefit with what you would otherwise spend on private fuel. Fully repaying all private fuel within HMRC’s deadline can remove the charge; partial repayment does not. Electricity does not attract this fuel benefit charge.

Question 5

What changes in April 2027?

Accepted Answer

The electric car BIK rate rises from 4% to 5%, and several low-emission bands increase. Rates from 75 g/km upwards stay the same in these tables. This calculator leaves the 2027/28 fuel multiplier as TBC and treats future income tax and NI rates as planning assumptions.

Insuring the company car too?

Insuring the company car too?

Company Car BiK Calculator

Insuring the company car too?

Insuring the company car too?