Car Benefit in Kind
Uses P11D value, CO₂, electric range, diesel status, availability and qualifying contributions.
2026/27 BIK rates · director and company view
Director company car tax calculator
See the Benefit-in-Kind percentage, director Income Tax, employer Class 1A NI, private fuel charge and indicative Corporation Tax relief in one place.
CO₂ and electric-range bandsDirector and employer taxElectric-car relief illustrated
Car and director details
£
g/km
Use the figure your employer or HMRC uses from the vehicle records.
Electric range is only used for cars with CO₂ emissions from 1–50g/km.
£
HMRC deduction capped at £5,000.
£
Only switch this on if private fuel is not fully repaid. Electricity is not treated as fuel for this benefit.
Annual director tax
£720
At a 40% marginal Income Tax rate
Taxable benefit
£1,800
Employer Class 1A NI
£270
Annual benefit breakdown
Company car benefit£1,800.00
Total taxable benefit£1,800.00
Director Income Tax£720.00
Employer Class 1A NI£270.00
Combined tax cost£990.00
Monthly figures are annual equivalents divided by 12. Actual tax-code deductions can vary through the year.
Indicative Corporation Tax relief
Potential first-year capital allowance
£45,000
Using an indicative 100% allowance rate.
Potential tax saving at 25%£11,250.00
This simplified illustration assumes a company purchase. Pool balances, accounting-period apportionment, disposal proceeds, leasing and marginal relief can change the claim.
Open Corporation Tax calculatorInclude the benefit in your wider tax position
A company car can affect a director’s tax code and overall Self Assessment position alongside salary, dividends and other income.
What the estimate covers
The result separates the personal tax cost for the director from the company’s Class 1A National Insurance and gives an indicative view of capital allowances when the company buys the vehicle.
Private fuel benefit
Applies the 2026/27 car fuel multiplier when the company pays for unreimbursed private fuel.
Company-side impact
Shows Class 1A NI and an indicative first-year capital allowance and Corporation Tax saving.
Personal tax connection
Shows the director's estimated tax and links through to the broader Self Assessment and director-pay tools.
Company car tax FAQs
What value is used to calculate company car tax?
The calculation normally starts with the car's original list price including VAT, delivery and qualifying accessories—not the price paid for a used car. A qualifying director contribution towards the car can reduce this value by up to £5,000.
How are electric and plug-in hybrid cars treated in 2026/27?
Zero-emission cars use a 4% appropriate percentage. Cars emitting 1–50g/km use percentages from 4% to 16%, depending on their zero-emission electric range.
Does the company pay National Insurance on the benefit?
Usually yes. The employer generally pays Class 1A National Insurance on the taxable car and fuel benefit. This calculator uses the 2026/27 rate of 15%.
Does a company car go on the director's Self Assessment?
The benefit is normally reported by the employer and may be collected through the director's PAYE code. Directors completing Self Assessment should ensure employment benefits and P11D information are correctly reflected where required.
Considering a car through your company?
We can compare purchase, lease and personal ownership using your company’s actual profits and the director’s wider income.
Ask us to compare the options