Hundred SummersCompany car tax calculator: benefit in kind for 2026/27
HMRC’s appropriate percentage for the car (electric, plug-in hybrid by electric range, petrol or diesel by CO2 with the RDE2 supplement) times the P11D value, taxed at your marginal rate, with the private fuel charge if your employer pays for it, the employer’s Class 1A NI and next year’s rate alongside. Your figures never leave your browser.
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Worked example
Computed when this page was built by the same engine that runs the calculator above, so the figures below and the live tool can never disagree. Change any input above to see your own.
| Inputs | |
|---|---|
| List price (P11D) | £40,000 |
| Fuel | Electric (0 g/km) |
| Salary and other income | £60,000 |
| Tax residence | England, Wales or N. Ireland |
| Results | |
|---|---|
| Appropriate percentage 2026/27 | 4% |
| Cash equivalent (the taxable benefit) | £1,600 |
| Income tax on it a year | £640 |
| A month through your tax code | £53 |
| Employer's Class 1A NI | £240 |
| Rate next year (2027/28) | 5% |
The next question
What does my pay come to after tax? →Take-home pay calculator
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Read the guide
- Salary sacrifice, properly explained →How giving up pay for a pension contribution saves both income tax and National Insurance, the employer's saving and whether it is passed on, the 60% zone where a contribution costs 38p in the pound, the side effects, and the £2,000 cap announced for 2029.
How the charge is built
The benefit is a percentage of the car’s list price when new (P11D value, including VAT, delivery and options, less up to £5,000 you contribute to the purchase), not what was paid for it. The percentage comes from HMRC’s ready reckoner: 4% for a fully electric car in 2026/27; 4–16% for plug-in hybrids of 1–50 g/km depending on their electric-only range; 17% at 51 g/km rising one point per 5 g to 37% at 155 g/km; and a 4-point supplement for diesels not meeting RDE2. The cash equivalent is added to your income and taxed at your marginal rate, collected through your tax code each month, and your employer pays 15% Class 1A National Insurance on it.
The path for electric cars
The electric rate rises a point a year on a published schedule, 5% in 2027/28, so an electric company car remains far cheaper than petrol for the foreseeable future but not as cheap as it was. Salary-sacrifice car schemes use the same percentages and are attractive for cars of 75 g/km or less because the usual “higher of benefit or salary given up” rule does not apply to them; the salary sacrifice calculator shows the NI side.
Private fuel is a separate charge
If your employer also pays for fuel you use privately, a second benefit arises: the same appropriate percentage applied to a fixed multiplier, £29,200 for 2026/27, uprated each year with September’s CPI. A 130 g/km petrol car at 32% carries a fuel benefit of £9,344 a year, which costs a higher-rate taxpayer £3,738 in tax, so the “free fuel” is only worth having if you would otherwise spend more than that at the pump on private miles. The charge is all or nothing: paying back some of the private fuel does not reduce it, paying back all of it removes it, and electricity supplied for a fully electric car is not fuel, so no charge arises. Tick the private-fuel box in the calculator to add it.
Sources
- HMRC, Work out the appropriate percentage for company car benefits (480: Appendix 2).
- HMRC, Future rates for petrol powered and hybrid powered company cars (2027/28).
- HMRC, How to work out the benefit of a company car (480: Chapter 12) (diesel supplement, capital contributions).
- HMRC, Tax on company cars.
- HMRC, Van benefit charge and fuel benefit charges for cars and vans for tax year 2026 to 2027 (£29,200 car fuel benefit multiplier) and Taxable fuel provided for company cars and vans (480: Chapter 13).