Calculate the company car tax and any fuel benefit charge on your actual income. Just select your vehicle or enter the P11D value and BIK rate to calculate. Instantly compare with taking a cash allowance instead. You can also optionally add your capital contribution. Updated for tax year 2020-2021.
Company car tax is based upon many factors nowadays, these not only include the co2 output at the tailpipe but also things like fuel type and any electric only range.
In order to help simplify things for you we have provided a calculator that works out company car tax the same way your employer would - by adding the taxable BIK to your regular income. We then show you exactly how much your tax is affected by the addition of any particular vehicle (whether you select from our list or enter your own details).
We have provided an up to date dataset of the latest vehicles available in the UK and worked out the bands for each for you. If your vehicle is not in our lists you just need to enter the P11D value and BIK Band Percentage into the tool.
Employees who receive a company car must pay company car tax (income tax only) whereas the employer will be subject to class 1A national insurance contributions. If the employee instead opts to take a 'cash allowance' they will have to buy a suitable vehicle and maintain it themselves. Tax is not avoided in this scenario as the cash received is simply added to the employee's income thus making it subject to income tax and national insurance. However, an employee can make this work if they slice some savings by getting a cheaper vehicle and offsetting the tax effect - one way is to get a cheap private lease or use your existing vehicle for business purposes.
Salary sacrifice was a popular choice to avoid paying company car tax but this loophole is now more or less closed (electric cars escape until 2021). The Taxman will figure out the company car tax avoided and tax you anyway.
What is the P11D Value?
One of the key figures required for company car tax is the P11D value. This is the list price of the car, plus any options fitted at the factory, all including VAT as well as delivery fees. The registration and road tax costs are not included.
Choose your vehicle, start by selecting the manufacturer.
What is the BIK Percentage?
The BiK percentage, or Benefit-in-Kind band, is the percent figure that you multiply the P11D value with (see above). The BiK percentage is dependent on the CO2 emissions as well as other factors such as fuel type and any electric driving range. It's got rather complicated compared to a few years ago where only the CO2 figure mattered!
Choose your vehicle, begin by clicking on the manufacturer.
You can also find your BIK rate in our Company Car Tax Rate Tables.
The 'cash equivalent' value of the 'perk' must be worked out by finding out the appropriate BIK percentage band, as well as the P11D value (the list price) and whether fuel is provided. The P11D value can be reduced by a one-off cash contribution by the employee (up to a maximum of £5,000).
Fuel Benefit is based on a fixed multiplier, which is set each year by the Chancellor. At the moment, employees are exempt from having to pay fuel benefit tax on electric cars, but other types of vehicle can see a significant tax hit. The reason is that the fuel multiplier is applied at the same BIK percentage band as the vehicle.
This calculator includes further options to make the resultant figures accurate, such as the popular deductions for pensions, student loans, etc.