Company Car Tax Calculator
Calculate your BIK tax from 2025 to 2030 using HMRC-confirmed escalating rates. Updated for the UK Autumn Budget 2025.
BIK Tax Calculator
HMRC-confirmed escalating rates through 2029/30. Results update as you type.
Your monthly BIK tax
£0
2025/26 · Electric (BEV) · £40,000 P11D
If this were petrol/diesel, you'd pay £480/month in BIK — you're saving £440/month
| Tax Year | BIK Rate | Taxable Benefit | Annual Tax | Monthly | Cumulative |
|---|---|---|---|---|---|
| 2025/26 | 3% | £1,200 | £480 | £40 | £480 |
| 2026/27 | 4% | £1,600 | £640 | £53 | £1,120 |
| 2027/28 | 5% | £2,000 | £800 | £67 | £1,920 |
| 2028/29 | 7% | £2,800 | £1,120 | £93 | £3,040 |
eVED from April 2028
3p/milePlus £195/year flat VED. eVED does not apply to HEV or ICE vehicles.
Your total BIK
£3,040
4 years
ICE equivalent
£23,680
4 years
Your saving
£20,640
vs petrol/diesel
Get exact figures for your vehicle
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HMRC BIK Rates 2025/26 to 2029/30
| Vehicle Type | 2025/26 | 2026/27 | 2027/28 | 2028/29 | 2029/30 |
|---|---|---|---|---|---|
| Electric (BEV) | 3% | 4% | 5% | 7% | 9% |
| Plug-in Hybrid (PHEV) | 6% | 7% | 8% | 18% | 19% |
| Hybrid (HEV) | 29% | 30% | 31% | 32% | 33% |
| Petrol/Diesel (ICE) | 36% | 37% | 37% | 38% | 39% |
Source: UK Autumn Budget 2025, HMRC confirmed rates. BIK rates for ICE vehicles can vary based on exact CO2 emissions. The rates shown are for the most common band. Vehicles with emissions below the band thresholds may have lower rates.
Understanding Company Car BIK Tax in 2025 and Beyond
Benefit-in-kind (BIK) tax is the tax you pay for having a company car available for personal use. It's calculated as the car's P11D value multiplied by the BIK percentage rate for that vehicle type, multiplied by your income tax bracket. The result is added to your taxable income for the year.
The UK Autumn Budget 2025 confirmed escalating BIK rates through 2029/30. Electric vehicles remain by far the most tax-efficient company car option, but rates are rising — from 3% in 2025/26 to 9% by 2029/30. That's still a fraction of the 39% rate for petrol and diesel, but it's a threefold increase that affects the total cost of ownership calculation.
The PHEV Cliff Edge in 2028
Plug-in hybrids see the most dramatic change: from 8% in 2027/28 to 18% in 2028/29 — more than doubling in a single year. Anyone starting a 4-year PHEV lease now will see their monthly BIK cost jump sharply mid-contract. This is critical for fleet procurement decisions being made today.
eVED from April 2028
A new pay-per-mile charge for electric and plug-in hybrid vehicles takes effect from April 2028. Battery electric vehicles pay 3p per mile; PHEVs pay 1.5p per mile. On 10,000 miles per year, that's £300 for a BEV or £150 for a PHEV, on top of the £195 flat VED. This calculator factors eVED into the projection from 2028/29 onwards.
Most BIK calculators show the current year only. But if you're choosing a company car on a 3–4 year contract, you need to know what it costs in year 3 and 4, not just today. That's what this calculator does — and it's why the year-by-year projection matters more than a single-year figure.
Orbis calculates BIK liability automatically across your entire fleet, year by year, for every vehicle. It's part of the TCO calculator in our EV Transition Planner — which also models charging costs, maintenance, insurance, and eVED. Talk to us →
BIK is just one number. Orbis shows you the full picture.
Total cost of ownership, charging costs, maintenance forecasting, eVED modelling, and mileage management — calculated automatically for every vehicle in your fleet.
Frequently Asked Questions
What are the company car BIK tax rates for 2025 to 2030?
HMRC has confirmed BIK rates through 2029/30. Electric vehicles (BEV): 3% in 2025/26, rising to 4%, 5%, 7%, then 9% by 2029/30. Plug-in hybrids (PHEV): 6% in 2025/26, rising to 7%, 8%, 18%, then 19%. Standard hybrids (HEV): 29% rising to 33%. Petrol/diesel (ICE): 36% rising to 39%. These rates were confirmed in the UK Autumn Budget 2025.
How is company car tax (BIK) calculated?
Company car tax is calculated as: P11D value × BIK rate × your income tax rate. The P11D value is the list price of the car including options and delivery but excluding first year registration fee and vehicle excise duty. The BIK rate is determined by the car's CO2 emissions and fuel type. Your income tax rate is 20% for basic rate, 40% for higher rate, or 45% for additional rate taxpayers.
What is the BIK rate for electric cars in 2025/26?
The BIK rate for fully electric cars (zero emissions) is 3% for the 2025/26 tax year. This rises to 4% in 2026/27, 5% in 2027/28, 7% in 2028/29, and 9% in 2029/30. Electric cars remain significantly cheaper in BIK tax compared to petrol or diesel vehicles, which start at 36% in 2025/26.
How much BIK tax will I pay on a £40,000 electric car?
On a £40,000 electric car in 2025/26: P11D (£40,000) × BIK rate (3%) = £1,200 taxable benefit. A basic rate (20%) taxpayer pays £240 per year (£20/month). A higher rate (40%) taxpayer pays £480 per year (£40/month). By 2029/30 when the BIK rate rises to 9%, the same car would cost £720/year for a basic rate taxpayer or £1,440/year for a higher rate taxpayer.
What is eVED and when does it start?
Electric Vehicle Excise Duty (eVED) is a new pay-per-mile road tax for electric vehicles, announced in the UK Autumn Budget 2025 and taking effect from April 2028. Battery electric vehicles (BEV) will pay 3p per mile and plug-in hybrids (PHEV) will pay 1.5p per mile. This is in addition to the standard VED flat rate of £195/year for EVs. Standard hybrids and ICE vehicles are not subject to eVED.