Fill in the figures, then click Work out the tax.
Result
Year by year (electric and 130-mile hybrids)
| Tax year | Rate | Taxable benefit | Your tax |
|---|
What to do
| Step | What it means |
|---|
What it does, and what it leaves to you
- Covers: one company car for one employee in 2026/27: the benefit from list price, accessories, capital contribution, private-use payments and days available; the fuel benefit; income tax at the rate you pick; employer Class 1A; and the scheduled zero-emission rates to 2029/30.
- Gives: the yearly and monthly tax, the employer cost, and the difference against a second car at today's rates.
- Not decided: the percentage for a petrol or diesel car (you enter it from your quote or P11D), vans, salary sacrifice car schemes, other tax years, tax on a benefit that crosses a band, and anything that changed after this was written.
Common questions
What is the company car tax (benefit in kind) rate for an electric car in 2026/27?
Fully electric company cars are taxed on 4% of their list price in 2026/27. The rate is scheduled to rise to 5% in 2027/28, 7% in 2028/29 and 9% in 2029/30. On a £45,000 car and a 40% taxpayer that is £720 a year, or £60 a month, in 2026/27.
How is company car tax worked out?
The taxable benefit is the car's P11D list price (plus optional accessories, less up to £5,000 of capital contribution) multiplied by a percentage set by its CO2 emissions or, for plug-in hybrids, its electric range. You pay income tax on that benefit at your own rate, usually collected through your tax code.
Do I pay National Insurance on a company car?
No. Employees pay no National Insurance on a company car. Your employer pays Class 1A National Insurance, at 15%, on the benefit.
Is free fuel worth it?
Rarely. If your employer pays for private fuel, a fuel benefit of £29,200 multiplied by the same percentage is added. On a car taxed at 28% that is £8,176 of extra taxable income, so unless your private mileage is very high you will pay less by buying your own fuel. Electricity for an electric company car is not a taxable fuel benefit.
What percentage applies to a petrol or diesel car?
It depends on the car's CO2 figure and rises through a table to a 37% maximum, with a 4 point supplement for diesels that do not meet the RDE2 standard. Because published tables differ between guides, this calculator asks you to enter the percentage printed on the car's quote or P11D rather than guessing it.
Is my data uploaded anywhere?
No. Everything is calculated in your browser and nothing is sent.