Is list price the same as what I paid?

BIK uses the manufacturer list price (including certain options), not the discounted invoice you negotiated.

Does this include National Insurance?

No — employers also pay Class 1A NI on the benefit. This tool focuses on employee income tax on BIK.

Sacrifice schemes change taxable pay and have their own rules. Model the car BIK here, then sense-check the whole package with your provider.

UK tax tool

Company-car tax (BIK) calculator

Estimate Benefit-in-Kind (BIK) company-car tax from list price, CO₂ / fuel type and your income-tax rate. Simplified bands for planning — not a payroll calculation.

List price / P11D (£)Your income tax rate (%)Fuel / powertrainCO₂ (g/km)

Illustrative BIK

£3,360 / year

~24% of list · benefit £8,400 · ~£280 / month tax

How company-car BIK works

HMRC taxes a percentage of the car’s list price (P11D value) based mainly on CO₂ emissions and, for electrified cars, electric range. That “benefit” is taxed at your income-tax rate.

Pure EVs sit on very low BIK percentages compared with petrols — which is why salary-sacrifice EVs became popular. Percentages are set per tax year and do move.

Diesel surcharge rules and exact hybrid bands change; use this tool to compare scenarios, then confirm with payroll or an accountant against the official HMRC tables.

Scenarios

£35k petrol ~120 g/km, 40% taxpayer

BIK % in the mid-20s band can mean hundreds per month in tax — often more painful than people expect.

Same list price as a pure EV

Very low BIK % can slash the annual tax dramatically versus ICE — compare before you sign a company-car scheme.

PHEV with short electric range

Low official CO₂ does not always mean ultra-low BIK if electric range is limited. Enter realistic range.

Frequently asked questions

Is list price the same as what I paid?: BIK uses the manufacturer list price (including certain options), not the discounted invoice you negotiated.
Does this include National Insurance?: No — employers also pay Class 1A NI on the benefit. This tool focuses on employee income tax on BIK.
Salary sacrifice?: Sacrifice schemes change taxable pay and have their own rules. Model the car BIK here, then sense-check the whole package with your provider.

Related tools and guides

Simplified illustrative BIK rates for education. Confirm current HMRC appropriate percentage tables and your payroll figures.