UK Company Car Tax (BIK) 2026/27
UK Company Car BIK tax 2026/27 - EV 4%, PHEV bands by electric range, diesel supplement, Class 1A employer NI. HMRC-verified, instant calculation.
Your car
Your annual BIK tax cost
£800
≈ £67 per month
- BIK %
- 4%
- Taxable BIK
- £2,000
- Annual tax
- £800
- Employer Class 1A
- £300
Your income tax is deducted via PAYE — HMRC amends your tax code to collect it monthly, or your employer payrolls the benefit. Employer Class 1A NI is a cost to your employer (they pay it, not you).
2026/27 BIK table (full)
Source: HMRC 480 Appendix 2, re-checked 30 September 2026.
| CO2 (g/km) | Electric range (mi) | BIK % |
|---|---|---|
| 0 (electric) | - | 4% |
| 1-50 | 130+ | 4% |
| 1-50 | 70-129 | 7% |
| 1-50 | 40-69 | 10% |
| 1-50 | 30-39 | 14% |
| 1-50 | <30 | 16% |
| 51-54 | - | 17% |
| 55-59 | - | 18% |
| 60-64 | - | 19% |
| 65-69 | - | 20% |
| 70-79 | - | 21% |
| 80-84 | - | 22% |
| 85-89 | - | 23% |
| … | - | +1% per 5 g/km |
| 150-154 | - | 36% |
| 155+ | - | 37% (cap) |
| Diesel non-RDE2: +4pp supplement (still capped at 37%) | ||
Related calculators
Salary Sacrifice →
The real win for EVs: pairing BIK with salary sacrifice. See the combined Income Tax + NI saving.
Salary Take-Home →
BIK changes your PAYE code and reduces monthly take-home. See the net impact on your payslip.
Mileage Tax Relief →
Using a personal car for business instead? Your employer can pay up to 55p a mile (first 10,000) and 25p after tax-free; claim Mileage Allowance Relief on any shortfall.
Tax Code Explainer →
HMRC reduces your tax-code number by the BIK amount. Decode the new code after a company car.
Related calculators
Other UK tax calculators that pair with the Company Car.
Frequently asked questions
What is the company car BIK rate for an EV in 2026/27?
Fully electric cars (0 g/km CO2) are taxed at 4% of P11D value in 2026/27 - up from 3% in 2025/26. The rate rises by 1 percentage point to 5% in 2027/28, then by 2 percentage points a year: 7% in 2028/29 and 9% in 2029/30 (HMRC policy papers on the appropriate percentage for 2025-2028 and 2028-2030). EVs remain the cheapest company-car choice.
How are PHEVs taxed for BIK in 2026/27?
Plug-in hybrids emitting 1-50 g/km CO2 are banded by electric-only range: 4% (130+ miles), 7% (70-129), 10% (40-69), 14% (30-39), 16% (under 30). The electric range is the WLTP-certified zero-emission distance - not any "official combined" range. It is on the car's certificate of conformity or the manufacturer's WLTP data; the V5C does not show it.
How is BIK calculated?
BIK amount = P11D value × appropriate percentage. Your annual tax = BIK amount × your marginal Income Tax rate (20%, 40%, or 45%). Monthly cost = that divided by 12. Example: a £50,000 EV at 4% BIK = £2,000 BIK, × 40% = £800/year = £67/month for a higher-rate taxpayer.
What is the P11D value?
P11D = the car's list price including factory options and VAT, minus any capital contribution from the employee (capped at £5,000, ITEPA 2003 s.132). It is NOT the discounted price actually paid - it's the list price HMRC uses. Your employer or the leasing company holds it (it appears on the P11D or the lease quote); the V5C does not show list price.
Does the 4% diesel supplement still apply?
Yes - diesel cars not certified to the Real Driving Emissions Step 2 (RDE2) standard attract a +4 percentage-point supplement, still subject to the 37% overall cap. The test is the car's certification, not its registration date. When the rule started in April 2018 HMRC expected few, if any, cars to meet RDE2 in 2018/19, so do not assume a 2018-2020 diesel is exempt: check the certificate of conformity, or ask your employer (an RDE2 diesel carries fuel type letter F on the P11D, per HMRC EIM24730).
How much does my employer pay in Class 1A NI?
Class 1A Employer NI is charged on the BIK amount at 15% in 2026/27 (up from 13.8% before April 2025, matching the Class 1 secondary rate). For a £50k EV at 4%, the employer pays £300/year Class 1A.
Is salary sacrifice still worth it for EVs?
Often, for higher-rate taxpayers. The lease is paid from gross salary, so the sacrificed pay escapes Income Tax and employee NI, and you pay BIK tax on the car instead (£800/year on a £50k EV at 4% for a 40% taxpayer). For cars emitting no more than 75 g/km the normal BIK charge applies rather than the amount of salary given up (HMRC, Salary sacrifice and the effects on PAYE). The employer also saves Class 1 NI on the sacrificed pay, which some schemes pass on. Compare the net cost with the same car leased personally before signing.
What about electric vans?
Vans have a separate regime. Zero-emission vans have had a nil van benefit charge since 6 April 2021. Other vans with private use carry a flat-rate van benefit charge of £4,170 for 2026/27, plus £798 van fuel benefit if the employer pays for private fuel (HMRC, Van benefit charge and fuel benefit charges for cars and vans 2026 to 2027). The logic here applies only to cars. Most double-cab pick-ups are treated as cars, not vans, from 6 April 2025 (HMRC EIM23151).