CAR TAX CALCULATOR
details
& payments
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You can use this service to calculate tax rates for new unregistered cars. Car tax rates are based on fuel type and CO2 emissions.
1. Car Details
Cost of extras:
Personal contribution:
Mpg:
P11D Value:
CO2 Rating: g/km
2. Tax & Payments
Income Tax:
Annual cash allowance:
Annual cash payment for trading down:
1. Car details
Select your car make, model and specification.
3. Your results
PRIVATE FUEL BENEFIT
If you have selected Private Fuel Benefit and your private mileage is less than the
estimated breakeven mileage indicated, then this would suggest the tax cost of receiving the
benefit outweighs the value of the private fuel you receive and you might consider opting
out of the benefit.
Your fuel results assume you achieve 100% of the manufacturers published mpg, unless you
enter your own mpg.
Frequently Asked Questions
What is a Company Car Tax?
All company car drivers pay tax on a percentage of the taxable value (P11D price) of their car. This percentage is based on:
- The CO2 emissions of the car
- the fuel type of the car
If you have the option to take either a company car or a cash allowance and the cash allowance is higher than the CO2 based car benefit, then you may be taxed on the cash allowance amount.
Taxation on company van
If a company van is made available to you to use privately, then you are subject to income tax on this benefit-in-kind. The scale charge for the current tax year (2021/22) is £3,500, upon which you will pay tax at your marginal rate. The cost can be summarised as follows:
| Tax Rate | Annual Cost | Monthly Cost |
| 20% | £700 | £58.33 |
| 40% | £1,400 | £116.67 |
Zero emission vans attract BIK at 0% of £3,500 which is £0.
Source:
HMRC
Private fuel benefits for vans
If fuel is provided for private use in a van, there is an additional fuel benefit flat rate charge of £669, upon which you will also pay tax at your marginal rate.
| Tax Rate | Annual Cost | Monthly Cost |
| 20% | £133.80 | £11.15 |
| 40% | £267.60 | £22.30 |
Source: HMRC
What is Benefit in Kind?
Benefit in Kind (BIK) refers to any benefit which employees receive from their employment in addition to their basic salary. These benefits may include, but are not limited to, a company car or private medical insurance.
The value of the BIK is calculated in accordance with HMRC rules and income tax is payable on this value.
Will I pay tax on my company car?
Tax is payable on the BIK value of a company car if it is available for private use by an employee or their family or household. Private use includes any journeys between home and normal place of work.
What if I have a choice of a cash allowance or a company car?
If you have the choice of either a company car or a cash allowance, and you choose to take the company car, your BIK will be calculated on the higher of:
- CO2 based BIK (Vehicle Benefit Value or P11D Value x CO2 %)
- Cash allowance
You will continue to pay income tax on the CO2 based BIK if:
- You choose an Ultra-Low Emission Vehicle (CO2 emissions of 75g/km or below)
- The cash allowance offered is lower, throughout the term of the lease, than the CO2 based BIK of the vehicle.