Rated Excellent on Trustpilot - Accounting Wise

Company Car Tax Calculator

Company car and fuel benefit-in-kind Calculator

If your business provides company cars or covers fuel costs for employees, understanding the associated Benefit-in-Kind (BIK) tax implications is essential. Our easy-to-use Company Car and Fuel BIK Calculator helps you quickly estimate the tax liability based on the vehicle’s emissions, list price, and your income tax band.

Whether you’re a business owner deciding on fleet options or an employee exploring the true cost of a company car, this tool provides clarity and empowers better financial decisions. Take the guesswork out of calculating your BIK tax with our accurate and up-to-date calculator.

Build Your Own Package Accounting Packages One Off Pricing
company car tax calculator Hero Image

Company car and fuel benefit-in-kind

The taxable benefit on your company car is based on the CO2 emissions of the car. These calculations are for the 2025/26 tax year.

The list price of the car and the cost of any optional extras.

The approved CO2 emissions of the vehicle - you can look it up on the official government website
The Diesel Supplement applies to diesel cars that (i) do NOT meet the Euro 6d emissions standard OR (ii) were registered BEFORE 1 September 2017. Diesel Electric hybrids are exempted from the supplement.

Please enter the electric range if applicable.

Does your employer pay for any private fuel for a company car?

Note: These calculations are only for illustrative purposes and are not a substitute for professional advice.

Need assistance? Connect with our Accounting Experts today!

Request Call Back

What is Company Car and Fuel Benefit-in-Kind (BIK)?

A Benefit-in-Kind (BIK) is a non-cash benefit provided by an employer that is taxable under UK law. When an employer offers a company car or pays for fuel for personal use, it’s considered a BIK and is subject to income tax.

The taxable value of a company car is determined by its list price and CO₂ emissions, with lower-emission vehicles attracting a smaller BIK tax charge. For company-paid fuel, the tax is based on a fixed annual fuel benefit charge, regardless of actual usage.

BIK taxes on company cars and fuel are designed to reflect the environmental impact and personal benefit of these perks, ensuring a fair tax contribution for employees while encouraging greener choices.

What is Company Car and Fuel Benefit-in-Kind
Why It’s Important to Plan and Track Company Car and Fuel BIK

Why It’s Important to Plan and Track Company Car and Fuel BIK

Proper planning and tracking of Company Car and Fuel Benefit-in-Kind (BIK) is crucial for managing tax efficiency and avoiding unexpected costs. For employers, it ensures compliance with HMRC regulations while optimizing fleet decisions to minimize tax liabilities. For employees, understanding and tracking BIK charges can help you make informed choices about the vehicles you use, balancing personal benefits with financial implications.

By staying on top of your BIK calculations, you can identify opportunities to reduce tax burdens—such as opting for low-emission vehicles—and maintain accurate records to avoid costly errors during tax assessments. Proactive planning saves money and promotes smarter, more sustainable vehicle decisions.

Get started with the right online accounting service for your UK small business

Build Your Own Package Accounting Packages One Off Pricing
Newsletter Subscription - Accounting Wise

Join Our Newsletter!

Get expert accounting tips, tax updates, and business insights straight to your inbox. Sign up today and stay one step ahead!

Newsletter Signup

Hot Topics

More related Accounting Community, News & Resources

Accounting Wise - what are cis returns

What are CIS Returns – A Guide for UK Contractors

Understanding CIS Returns is essential for staying compliant as a UK contractor. This guide breaks down how CIS works, who must file, key deadlines, common mistakes, and how subcontractors reclaim tax. Perfect for contractors who want a stress-free, penalty-free approach to CIS compliance.
Accounting Wise - claiming tax deductions as a sole trader

How to Claim Tax Deductions and Save Money as a Sole Trader

Understanding which expenses you can claim as a sole trader is one of the simplest ways to reduce your tax bill. This guide breaks down the rules on allowable expenses, capital allowances, home office costs, and mileage so you can confidently claim every deduction you're entitled to — and avoid paying more tax than you need to.
Accounting Wise - avoiding common CIS return mistakes

Common Mistakes in CIS Returns and How to Avoid Them

The Construction Industry Scheme (CIS) is full of strict rules and monthly deadlines, making it easy for contractors and subcontractors to slip up. From missed filings and incorrect deduction rates to poor record-keeping, simple CIS mistakes can quickly lead to penalties and delayed refunds. This post breaks down the most common CIS errors and tips to avoid them.
Formations Wise - Online Company Formation Services

Online Company Formation Services

Free company formation with our Pre-Built or Bespoke Accounting packages!

All official documents provided

Online Hub to manage your company

London Registered office Address

Your own incorporated limited company

Company Formation
Rated Excellent on Trust Pilot - Accounting Wise Logo

Get started with the right accounting solution for your business

Build Your Own PackageAccounting PackagesOne Off Pricing

Contact Us

Interested in Accounting Wise?

Request Call Back0330 113 8442

Accounting Wise is a trading style of Accounting Wise Ltd, a limited company registered in England under company number 09365202. Our registered office is: The Carriages, Station Road, Ware, SG12 9PL UK.

Content is for general information only. Always take advice.