Enter your car's P11D value, its CO2-based Benefit-in-Kind percentage and your tax rate to see the taxable benefit, the company car tax you'll pay, and the extra if your employer also pays for private fuel.
Benefit-in-Kind · annual cost
The P11D value is the figure HMRC uses to tax a company car — and it isn't what your employer paid. It's the car's list price including VAT, delivery and most factory-fitted options, but excluding the first registration fee and the first year's road tax. HMRC then multiplies the P11D value by a Benefit-in-Kind (BiK) percentage set by the car's CO2 emissions, and you pay Income Tax on the result at your usual rate.
| Car type | Typical BiK band 2026/27 |
|---|---|
| Fully electric (0g/km) | ~3% |
| Plug-in hybrid (low CO2) | 5–14% |
| Efficient petrol | 20–28% |
| Higher-emission diesel | 30–37% |
Electric cars sit at roughly a 3% BiK band for 2026/27 (rising 1% a year), versus 25–37% for petrol and diesel. On a £35,000 car a 40% taxpayer pays around £3,920 a year at a 28% petrol band — but only about £420 at the EV band. That gap is why salary-sacrifice EV schemes have boomed. Compare the headline company car tax on the company car tax calculator or model salary sacrifice on the salary sacrifice calculator.
The P11D value is the car's list price including VAT, delivery and most factory-fitted options, but excluding the first registration fee and road tax. It is the base figure HMRC uses for the Benefit-in-Kind calculation, not the price your employer actually paid.
P11D value × BiK percentage × your Income Tax rate. A £35,000 car at a 28% band gives a £9,800 taxable benefit; a 40% taxpayer pays around £3,920 a year in company car tax.
If your employer pays for private fuel, the taxable fuel benefit is a fixed multiplier (£28,200 for 2026/27) × your car's BiK percentage, then taxed at your rate. There is no fuel benefit on electricity for pure electric cars.
Because the P11D value uses the manufacturer's list price plus options and VAT, ignoring any dealer discount your employer negotiated. So the taxable value is based on the headline price, not the actual purchase price.
