FullWorkings UK tax and finance calculators

Company car tax

2026-27

The vehicle

Car or vanVan benefit is a flat charge and ignores the van's value.
List priceThe P11D value — the maker's list price with delivery and options, not what was paid. £
CO2 emissionsGrams per km, from the V5C. Zero for a fully electric car.
Electric rangeMiles on electric alone. Only needed for a plug-in hybrid under 51 g/km.
FuelA diesel that does not meet Euro standard 6d carries a supplement.

You

Free fuel for private useCharged on a fixed multiplier, not on the car's price.
Capital contributionWhat you paid toward the car. It comes off the price, not off the benefit. £
Your tax rateThe benefit is added to your income and taxed at your rate.

What it costs you

Tax on the benefit £0.00 a year
Which band—
Appropriate percentage—
Taxable benefit£0.00
Total benefit£0.00
Tax a year£0.00
Tax a month£0.00
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How this is worked out

A company car is taxed on a percentage of its list price, and the percentage comes from its CO2 emissions. The benefit is added to your income and taxed at your rate.

⚠ It is the list price, not what was paid

The P11D value is the manufacturer's list price including delivery and the options fitted. A discount, a trade-in or a lease deal makes no difference to it — which is why an identical car bought cheaply is taxed exactly the same as one bought at full price.

⚠ Free fuel ignores the car's price entirely

Fuel benefit is the same percentage applied to a fixed multiplier, not to the car. So it costs the same on a small car as on an expensive one, and on a modest car it is very often more than the private fuel is worth. Working out what you actually spend on private mileage before accepting it is usually the single most valuable calculation on this page.

⚠ A capital contribution comes off the price, not the benefit

Paying £5,000 toward a car does not reduce the taxable benefit by £5,000. It reduces the price the percentage is applied to, so on a 20% car it is worth £1,000 of benefit and around £400 of tax to a higher-rate payer. Useful, but not what most people expect.

Plug-in hybrids are banded by electric range

Below 51 g/km the percentage depends on how far the car goes on electric alone, and the spread is wide — a long-range hybrid can be four times better off than a short-range one on the same emissions. That is why this page refuses to answer without the range rather than picking a band for you.

The band table is not a formula

From 51 g/km it looks like one percentage point per 5 g/km, and it very nearly is. But two bands share a percentage, so a calculator that computes the ladder is right thirty times and wrong once. Every band here is stored and checked against the cell it came from.

What this does not cover

Cars registered before April 2020, which are measured under the older NEDC standard. Classic cars over fifteen years old, valued differently. Cars unavailable for part of the year, where the benefit is time-apportioned. Payments you make for private use, which reduce the benefit pound for pound and are different from a capital contribution. Pool cars, which are not a benefit at all. Employer's National Insurance on the benefit, which is the employer's cost rather than yours. And whether a car allowance and your own car would suit you better, which depends on the mileage rates.

Where these figures come from

Every figure above is read from a dated rate file rather than written into the page, and each one is checked against the gov.uk page it came from. How these numbers are kept right sets out the whole process.

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