BIK Percentage

0%

Taxable Benefit

£0

Annual Car Tax

£0

Monthly Tax

£0

Tax Calculation Breakdown

P11D Value £0
BIK Rate 0%
Taxable Benefit (P11D × BIK) £0
Your Tax Rate 20%
Tax You Pay £0

Compare With Electric Alternative

Your Current Selection

£0/year
0% BIK

Same Car - Electric (2% BIK)

£0/year
Annual Saving: £0

BIK Rates 2025/26 by CO2 Emissions

Electric Vehicle Advantage: Zero-emission electric vehicles have just 2% BIK rate in 2025/26, making them extremely tax-efficient company cars.
CO2 Emissions (g/km) Electric Range BIK Rate 2025/26
0 N/A (Pure Electric) 2%
1-50 130+ miles 2%
1-50 70-129 miles 5%
1-50 40-69 miles 8%
1-50 30-39 miles 12%
1-50 Under 30 miles 14%
51-54 - 15%
55-59 - 16%
60-64 - 17%
65-69 - 18%
70-74 - 19%
75-79 - 20%
80-84 - 21%
85-89 - 22%
90-94 - 23%
95-99 - 24%
100-104 - 25%
105-109 - 26%
110-114 - 27%
115-119 - 28%
120-124 - 29%
125-129 - 30%
130-134 - 31%
135-139 - 32%
140-144 - 33%
145-149 - 34%
150-154 - 35%
155-159 - 36%
160+ - 37%

Note: Diesel cars that don't meet RDE2 standards have a 4% supplement added to their BIK rate (capped at 37% maximum).

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Frequently Asked Questions

How is company car tax calculated?
Company car tax is: P11D Value × BIK Percentage × Your Tax Rate. The BIK percentage depends on CO2 emissions, ranging from 2% for EVs to 37% for high-emission cars.
What is the BIK rate for electric cars in 2025/26?
Pure electric vehicles (0g/km CO2) have just 2% BIK rate. A £40,000 electric car costs a basic rate taxpayer only £160/year in tax.
What is P11D value?
P11D value is the car's list price including VAT, delivery, and optional extras. It doesn't include road tax or first registration fee.
Is it better to have a company car or car allowance?
Company cars are often better for electric/low-emission vehicles and high mileage drivers. Car allowances may suit those wanting choice or with low mileage.
Do I pay tax on fuel benefit?
If your employer pays for private fuel, you pay tax on the fuel benefit (£27,800 × BIK% × your tax rate). It's often cheaper to pay for private fuel yourself.

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Last updated: January 2026 | Verified with latest UK rates

Expert Reviewed — This calculator is reviewed by our team of financial experts and updated regularly with the latest UK tax rates and regulations. Last verified: January 2026.

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People Also Ask

You must file a Self Assessment tax return if you're self-employed earning over £1,000, have income over £100,000, earn untaxed income like rental or investment income, or are a company director. Deadline is 31 January for online filing.

Most employees are on 1257L for 2024/25, reflecting the £12,570 personal allowance. If you have multiple jobs, secondary employment uses BR (basic rate) code. Check your code on payslips or via HMRC online.

Maximise pension contributions (reduces taxable income), use your ISA allowance (tax-free savings), claim work-from-home relief if eligible, make gift aid donations, and ensure you're using all available allowances.

MB

Mustafa Bilgic

Financial Calculator Expert & Developer

UK TaxFinancial Planning10+ years experience