BIK Calculator (UK Benefit in Kind)
Benefit-in-Kind (BIK) tax is the income tax you pay on non-cash perks from your employer — most commonly a company car. Enter your car's details to see your annual and monthly BIK tax for 2026/27.
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BIK = list price × BIK percentage. The percentage is set by HMRC and depends on CO₂ emissions and fuel type. Electric cars sit at 4% in 2026/27 (rising to 5% in 2027/28, 7% in 2028/29 and 9% in 2029/30), while high-emission petrol or diesel cars hit the 37% maximum.
The BIK value is added to your taxable income and taxed at your marginal rate (20%, 40% or 45%). Your employer also pays Class 1A National Insurance at 15% on the same figure for 2026/27.
Company Car Details
Including extras and delivery, before discounts
Check V5C or manufacturer specs
What your BIK really costs each month
On a £40,000 petrol company car at 30% BIK, a higher-rate taxpayer pays roughly £4,800/year (£400/month) in BIK tax. The same £40,000 budget in an EV at 4% BIK costs just £640/year (£53/month). The EV saves you almost £350/month before fuel savings.
If your employer offers a salary-sacrifice EV scheme, the savings stack further because the lease comes out of pre-tax salary — typically £150–£300 extra savings per month for a higher-rate payer.
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