Benefit in Kind, often called BIK, is the tax you may pay when your employer provides you with a company car that is also available for personal use.
This is usually linked to the car’s P11D value, which is different from your lease rental or monthly payment.
Cars with lower CO₂ emissions usually sit in lower BIK bands, which is why electric cars are popular with company car drivers.
The taxable benefit is then multiplied by your personal income tax rate to estimate what you may pay.
Electric vehicles can offer lower running costs, a smooth driving experience and attractive company car tax treatment compared with many petrol or diesel alternatives.
Tax rules can change, so this page keeps things simple and points you towards GOV.UK/HMRC for exact, up-to-date calculations.
Choose a car that suits your mileage, charging access, budget and business needs.
Use HMRC’s company car calculator for the most accurate result for your situation.
Compare monthly rentals, contract terms and practical features before choosing your next company car.
This mini example is designed to show the basic idea only. It keeps the page useful without creating a high-maintenance tax calculator.
For exact figures, always use the official GOV.UK/HMRC company car tax calculator.
This guide is for general information only and is not tax advice. Company car tax rules, BIK rates and Vehicle Excise Duty can change. For the most accurate and up-to-date information, please use the official GOV.UK/HMRC tools or speak to your accountant, payroll provider or tax adviser.
Tell us what you need from your next company car and we’ll help you compare practical, tax-friendly leasing options.
Simple answers to the questions business drivers ask most often.
In many cases, yes. Electric cars usually sit in lower BIK bands than petrol or diesel vehicles, although rates and rules can change by tax year. Always check GOV.UK or seek professional advice for your exact position.
No. This guide is for general information only. For exact figures, use HMRC’s calculator or speak to your accountant, payroll team or tax adviser.
Electric, zero and low-emission vehicles are covered by updated Vehicle Excise Duty rules. GOV.UK should be checked for the latest rates.
You usually need the vehicle’s P11D value, CO₂ emissions, fuel type, tax year and your income tax rate.
Explore our latest electric car leasing deals or speak to the UK Carline team for help choosing a vehicle that works for your business, budget and lifestyle.
