Frequently asked questions
How is company car BIK tax calculated?
Start with the car price and chargeable accessories, deduct a qualifying capital contribution up to £5,000, multiply by the appropriate percentage, then apply your income-tax rate. This tool is a full-year estimate and does not calculate every statutory adjustment.
What is the electric company car tax rate for 2026/27?
A zero-emission company car uses a 4% appropriate percentage in 2026/27. The employee tax estimate also depends on the entered car price, qualifying contribution and selected income-tax rate.
What is the diesel surcharge?
A diesel that does not meet RDE2 generally receives a 4 percentage-point supplement, capped at 37%. Check the vehicle documentation rather than inferring RDE2 status from its registration year.
Which car price should I enter?
Use the statutory price for the car and chargeable accessories, not the employer’s discounted or second-hand purchase price. A qualifying employee capital contribution can reduce that price by up to £5,000.
What is the company car fuel benefit?
If your employer pays for private fuel and the benefit applies, the 2026/27 calculation uses a £29,200 multiplier and the car’s appropriate percentage. This tool shows the fuel benefit separately.
Does my employer pay anything too?
Yes. The employer pays Class 1A National Insurance on the taxable benefit, at 15% from April 2025. This calculator shows an estimate of that employer cost alongside your income tax.