Company car tax · EV BIK calculator · 2026/27–2029/30
EV company car tax calculator 2026/27
Estimate the Benefit in Kind (BIK) and income-tax cost of a fully electric company car using its P11D value and the published zero-emission rates.
Quick answer · 2026/27
Electric company car tax starts with a 4% BIK rate
For a fully electric, zero-emission company car in 2026/27, the BIK percentage is 4%. The taxable benefit is broadly the adjusted P11D value multiplied by that percentage; your marginal income-tax rate then determines the tax you pay.
1. Enter the electric company car value and tax year
Use the statutory P11D/list-price value supplied for the company car, not the monthly lease payment or current used-car value.
2. Estimate your personal tax cost
Enter your own marginal income-tax rate. This keeps the calculator usable for different UK tax positions, including Scottish rates, without pretending one band fits everyone.
Qualifying capital contributions are capped at £5,000 in the statutory price calculation. This simplified calculator does not model every availability or special-case adjustment.
Company car tax rates used by this EV BIK calculator
| Tax year | Fully electric / zero-emission BIK rate |
|---|---|
| 2026/27 | 4% |
| 2027/28 | 5% |
| 2028/29 | 7% |
| 2029/30 | 9% |
For a zero-emission company car, the appropriate percentage is 4% in 2026/27 and 5% in 2027/28. Published policy then increases the zero-emission rate by two percentage points a year, to 7% in 2028/29 and 9% in 2029/30.
This is why a BIK calculator and a lease-payment calculator answer different questions: company car tax is based on the taxable benefit, not simply what the employer pays to lease the car.
For a fully electric company car, the calculation starts with the statutory car value used for BIK, usually based on the P11D/list price. A qualifying employee capital contribution can reduce that value by up to £5,000. The adjusted value is multiplied by the zero-emission BIK percentage for the tax year, then any qualifying required payment for private use is deducted from the benefit. Your marginal income-tax rate gives an estimate of the personal tax cost.
How this company car tax calculator works
Example: company car tax on a £50,000 electric car
£50,000 × 4% = £2,000 taxable benefit.
At a 20% marginal income-tax rate: £400/year.
At a 40% marginal income-tax rate: £800/year.
The taxable benefit and the tax bill are not the same number. The BIK percentage calculates the cash-equivalent benefit; your tax position determines how much income tax that benefit creates.
Why the P11D value matters
HMRC's company-car rules use the statutory list price, including relevant accessories, rather than simply the employer's lease rental or the car's current resale value. If the employee made a qualifying capital contribution towards the car or accessories, HMRC allows a deduction capped at £5,000.
What the calculator does not attempt to model
- Periods when a car is unavailable and statutory availability adjustments
- Every form of employee payment or payroll adjustment
- The full salary-sacrifice cashflow, including pension and National Insurance effects
- Employer scheme fees, insurance, maintenance or early-termination terms
- Your complete personal tax calculation
For a salary-sacrifice Tesla, the BIK estimate is only one piece of the decision. See the Tesla company car tax and salary sacrifice guide for the surrounding rules.
Own car or company car?
BIK and mileage allowance solve different problems.
An employee-owned Tesla can use the 55p/25p AMAP system for qualifying business travel. A company Tesla can create BIK and uses separate Advisory Electric Rates for business electricity.
Frequently asked questions
Is this company car tax calculator for all cars?
No. It is designed for fully electric, zero-emission company cars such as a Tesla. Petrol, diesel and plug-in hybrid cars use CO₂ and, for some hybrids, electric-range bands that this simplified calculator does not model.
What BIK rate does a Tesla use in 2026/27?
A fully electric, zero-emission company car uses 4% in tax year 2026/27.
Why does the calculator ask for P11D value?
Company-car benefit is based on statutory list-price rules, not simply the monthly lease payment or current used price.
Does the calculator work for salary sacrifice?
It estimates the company-car BIK element. It does not calculate whether a specific salary-sacrifice agreement is financially worthwhile because that also depends on the salary given up, tax and National Insurance, pension treatment and the scheme terms.
Why can I enter my own income-tax rate?
The taxable benefit is added to employment income, and UK income-tax bands vary with circumstances and location. A custom marginal rate avoids assuming one band fits every employee.
Does low private mileage reduce the BIK percentage?
Normally no. Company-car benefit is generally driven by availability for private use rather than the number of private miles driven.
Official sources
- HMRC – Company car benefit appropriate percentage
- HMRC – Company car tax rates 2028/29 and 2029/30
- HMRC – P11D company-car valuation
- GOV.UK – Official company car tax calculator
Estimate the tax. Keep the real journeys reviewable.
DriveQuery is being built to connect Tesla trip and charging history with the practical records behind company-car use.