Electric Vehicle BIK Calculator 2026/27

Calculate your company car Benefit in Kind (BIK) tax for 2026/27. Compare electric vs petrol/diesel and see how much you save with an EV.

Annual BIK Tax Cost
£0
Monthly: £0
BIK %
0%
Taxable P11D Value
£0
Income Tax on BIK
£0
Fuel Benefit Tax
£0
vs Equivalent Petrol
£0
Annual Saving vs Petrol
£0
Enter your car details to see your BIK tax.
EV BIK % Roadmap vs Petrol
2026/27 Company Car BIK Rates

Electric vehicles attract just 3% BIK in 2026/27 · a huge saving over petrol or diesel company cars. The EV rate is rising gradually: 4% in 2027/28, 5% in 2028/29, and 7% by 2029/30, but still far below petrol rates of 20–37%.

Diesel company cars attract a 4% BIK surcharge if not RDE2 compliant. Petrol cars are rated 20–37% based on CO2 emissions.

Company Car BIK Tax · EV vs Petrol 2026/27

Benefit-in-kind tax on company cars. Electric vehicles: 3% BIK. Petrol/diesel: 25–37% BIK depending on CO2 emissions.

Car Type List Price BIK % Taxable Benefit Basic Rate Tax (20%) Higher Rate Tax (40%)
Electric (EV)£35,0003%£1,050£210/yr£420/yr
Electric (EV)£50,0003%£1,500£300/yr£600/yr
Petrol 120g/km£30,00029%£8,700£1,740/yr£3,480/yr
Petrol 120g/km£40,00029%£11,600£2,320/yr£4,640/yr
Diesel 120g/km£30,00033%£9,900£1,980/yr£3,960/yr
Hybrid PHEV£40,0005%£2,000£400/yr£800/yr

EV Company Car Tax FAQs

How much is BIK tax on an electric company car UK 2026?
Electric vehicles attract a 3% BIK rate in 2026/27. On a £40,000 EV the taxable benefit is £1,200. A basic rate (20%) taxpayer pays £240/year; a higher rate (40%) taxpayer pays £480/year. This compares to £3,000–£5,000+ for equivalent petrol cars, making EVs by far the most tax-efficient company car choice.
Is an electric car better than a car allowance UK?
For an electric vehicle, a company car is usually more tax-efficient than a car allowance in 2026/27. The BIK tax on an EV is very low (3%), the employer covers purchase, insurance and maintenance costs, and you pay no National Insurance on the benefit. A car allowance is taxed as salary at 20–40%, leaving significantly less cash to fund a comparable car.
When does the EV BIK rate increase?
The EV BIK rate is 3% in 2026/27, rising to 4% in 2027/28, 5% in 2028/29, and 7% by 2029/30. While the rate is rising, it will remain a fraction of petrol and diesel rates (25–37%) throughout the decade, keeping electric company cars highly advantageous.
What is the BIK tax on a PHEV in 2026/27?
Plug-in hybrid (PHEV) vehicles with CO2 emissions of 1–50g/km attract a 5% BIK rate in 2026/27. On a £40,000 PHEV the taxable benefit is £2,000 · costing a basic rate taxpayer £400/year and a higher rate taxpayer £800/year. PHEVs offer a good middle ground but still pay significantly more than pure EVs at 3%.

For informational purposes only · Not financial advice · Tax rates shown are for 2026/27 · Verify with HMRC