Company car tax calculator

The company car tax calculator enables you to calculate costs of your company car as an employee. Select from the boxes below to understand the benefit in kind tax charges, running costs such as mpg and insurance group of the car you are interested in.

FAQs

How is company car tax calculated?

You'll be taxed at your income tax rate on a percentage of the car's P11D value, which is the list price minus the first year's Vehicle Excise Duty and the registration fee. The percentage is based on the amount of CO2 your car emits, with dirtier models costing more.

Should I take a company car or a cash alternative?

Choosing a company car is easier than buying privately, not least because servicing, maintenance, insurance and breakdown cover are all taken care of for you. However, you'll have a wider choice of models if you take a cash allowance and, if you buy outright, an asset that you can sell in the future. Read more here

Should I choose a petrol, diesel, hybrid or electric company car?

Electric vehicles make the cheapest company cars, but diesels are more suited to high-mileage use, while plug-in hybrids tread the middle ground on tax but don't leave you with the range anxiety that fully electric cars can. Petrols tend to make the least sense. Read more here

How can I keep my company car tax bill low?

The amount of company car tax that you pay depends on your earnings, plus the value of your car and how much CO2 it emits, while for plug-in hybrids the electric-only range is also a factor. But essentially, the cheaper the car and the less it emits, the less you'll pay. Read more here

What are approved mileage allowance payments?

Driving your own car, rather than a company supplied one, on business brings the next service closer, increases wear and tear, and adds miles that increase depreciation. The approved mileage allowance payment is the amount you can be compensated without having to pay tax on it. Read more here

What are advisory fuel rates and how do they work?

Advisory fuel rates are the Government's recommended rates for reimbursing employees' fuel costs while driving a company car on business. They can also be used if employees need to repay the cost of fuel used for private travel. Read more here