Company-car income tax
The taxable benefit is P11D value × BIK percentage. Multiply that benefit by your applicable income tax rate to estimate the tax you pay.
For company-car drivers
Your company car. Your tax bill.
Benefit-in-kind (BIK) is income tax on the benefit of a company car. It is separate from the vehicle tax and mileage charge payable by the registered keeper.
How do you calculate electric company-car income tax?
Multiply P11D value by the appropriate BIK percentage, then apply your income-tax rate. For a £40,000 zero-emission car in 2028/29, £40,000 × 7% × 20% gives £560 annual income tax in a simplified full-year example. This is separate from VED. See the assumptions and examples.
Two different taxes, two different questions.
Vehicle tax & mileage charge
The car also has vehicle tax obligations. Use the road-tax calculator for a separate illustration, and check your employer’s policy for any charges passed on to you.
Battery electric cars only. This simple estimate assumes one income tax rate applies to the entire benefit. It excludes contributions, availability adjustments, salary-sacrifice effects, employer National Insurance and other benefits.