Estimate the annual tax charge on a company car from list price, BIK rate and your tax rate. Use this page when you want to compare a car perk against cash pay or a different vehicle choice.
BENEFIT IN KIND
Company car tax calculator
Estimated result
£3,500
- Taxable car benefit
- £8,750
- Annual tax charge
- £3,500
- Monthly equivalent
- £292
Simplified BIK illustration only. CO2 bands, electric range, diesel supplements, accessories and fuel benefit charges can all alter the real result.
Estimate the benefit-in-kind tax on a company car from list price, BIK rate and your income-tax band.
Estimate the annual tax charge on a company car from list price, BIK rate and your tax rate. Use this page when you want to compare a car perk against cash pay or a different vehicle choice.
A £35,000 car with a 25% BIK rate creates a £8,750 taxable benefit. If you are in the 40% tax band, the charge is roughly £3,500 before any rule changes or additions such as fuel benefit.
- CO2 bands, electric range and diesel supplements can alter the BIK rate.
- Accessories, fuel benefit and availability rules can change the real charge.
- Different tax bands create different personal costs even for the same company car.
SOURCES & REVIEW
Checked against official guidance
Last reviewed 19 October 2026 · Rule version GB-2026.27.1
Daily/weekly source monitoring. If a source changes, the affected rule set is reviewed before publication.
All source links are kept visible so you can verify the figures used on this page.
Source line: Company car assumptions are checked against GOV.UK company-car guidance and BIK rules.
GOV.UK: Company car tax ↗Sources, methodology and update policy →Report an issue or correction →WHY RESULTS DIFFER
Why two users can see different results
Why the result can differ
Different tax codes, payroll periods, Scottish bands, pension methods or lender assumptions can change the outcome.
One-off bonuses, pay frequency, overpayments, allowances and reliefs can move the result away from a simple annual estimate.
Where a rule depends on eligibility or legal status, this page shows an estimate and links to official guidance.
This section is intentionally repeated on key tools so the explanation stays near the result instead of being hidden in a separate policy page.
COMMON QUESTIONS
Frequently asked questions
Is this the same as buying the car privately?
No. Benefit-in-kind tax is a separate charge from ownership costs.
Do electric cars use the same rate?
No. Electric cars usually have different BIK treatment from petrol and diesel cars.
Can fuel benefit be added?
Yes, but that is a separate charge and needs its own check.