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Company car tax

Company car tax calculator

Enter the P11D value, emissions and income tax rate to calculate the yearly and monthly cost.

What will this company car cost me?

Multiplies the P11D value by HMRC's appropriate percentage, then applies your marginal income tax rate.

£56

Income tax a month, 2026/27

Appropriate percentageHMRC's figure for 2026/27.
4%
Taxable benefitThe cash equivalent reported on the P11D.
£1,680
Income tax a year
£672
Income tax a month
£56
Calculation details

What is not included

  • Capital contributions, months the car was unavailable and payments for private use all reduce the charge. The estimate excludes them, so it is the maximum before deductions.
  • Scotland sets its own income tax bands, so a Scottish higher rate taxpayer pays 42 per cent rather than 40 and reaches that rate at a lower salary.

Summary: In the UK, HMRC sets the company car appropriate percentage for 2026/27; a zero emission car is charged at 4 per cent of its P11D value. That taxable benefit is then charged at the driver's marginal income tax rate, with Scottish income tax bands applying to Scottish taxpayers.

4%
Zero emission car, 2026/27
HM Revenue and Customs, Work out the appropriate percentage for company car benefits (480: Appendix 2) (as of 6 April 2026)
37%
Highest band, any car
HM Revenue and Customs, Work out the appropriate percentage for company car benefits (480: Appendix 2) (as of 6 April 2026)
£29,200
Fuel benefit multiplier
HM Revenue and Customs, Van benefit charge and fuel benefit charges for cars and vans for tax year 2026 to 2027 (as of 3 December 2025)

Company car tax rates for three years

Appropriate percentage for a zero emission car and for a 120 g/km petrol car
Tax yearZero emission120 g/km petrolCap
2025/263%30%37%
2026/274%30%37%
2027/285%30%37%

Deductions from the taxable benefit

  • A capital contribution towards the price of the car, capped at £5,000, comes off the P11D value.
  • Months the car was genuinely unavailable are deducted, pro rata.
  • Payments you make to your employer for private use reduce the benefit pound for pound.
  • A car shared with somebody else is apportioned rather than charged twice in full.

These deductions are not included in the estimate above. Each can only reduce the charge, so the result is the maximum before deductions.

Common questions

How do I calculate company car tax?
P11D value multiplied by an appropriate percentage set by the car's CO2 figure, which gives the taxable benefit. That figure is then taxed at your marginal income tax rate, so a higher rate taxpayer pays 40 per cent of it.
Why does the electric range matter?
Cars emitting 1 to 50 g/km are banded by electric only range rather than by CO2. In 2026/27 that runs from 4 per cent at 130 miles and above to 16 per cent below 30 miles, which is a very large difference on the same car.
What is the diesel supplement?
4 percentage points added to a diesel that is not certified to the RDE2 standard, which HMRC treats as the same thing as Euro 6d. It cannot push the appropriate percentage above the 37 per cent cap, and it never applies to a hybrid.
Does Scotland pay a different amount?
Yes. The benefit is the same but the tax on it is not. Scotland sets its own rates and bands, so a Scottish higher rate taxpayer pays 42 per cent rather than 40 and reaches that rate at a lower salary.

Sources