Company car vs EV calculator
Compare the benefit-in-kind tax bill on a petrol company car against an electric equivalent, over one year and over five.
Petrol vs electric BIK tax
Change the numbers, the results update instantly.
Assumes the same list price for both cars, for a like-for-like comparison. Always take advice before acting.
How it works
Benefit-in-kind tax on a company car is based on the car's list price multiplied by a percentage set by its CO2 emissions, then taxed at your personal marginal rate. Electric vehicles get a much lower BIK percentage than petrol cars, currently 4% for 2026/27, which is why company EVs are usually significantly cheaper in tax terms for the same list price, often by thousands of pounds a year for higher earners. Getting a company car onto the payroll correctly, with the right P11D reporting, is part of what our payroll service handles for clients.
Frequently asked questions
Why is the EV rate so much lower?
The government sets lower benefit-in-kind percentages for lower-emission vehicles to encourage EV adoption through company car schemes. Pure electric cars currently attract one of the lowest bands available.
Does this include the cost of the car itself?
No, this compares only the tax cost to you as the employee (or director). It doesn't compare the company's cost of buying or leasing the vehicle.
Is the EV BIK rate fixed for future years?
No, the government publishes rates in advance for several years but they are subject to change in future Budgets. Check the current rate before making a long-term decision.
Does charging at home or work affect this?
Employer-provided electricity for charging a company EV is generally not a taxable benefit, on top of the low BIK rate, adding further to the savings not shown in this simplified tool.
Related tools
These results are a simplified illustration based on 2026/27 rates, not advice. Your real position depends on your full circumstances. For a personalised answer, book a free consultation.
Numbers looking complicated?
A calculator gives you an estimate. A free call gives you a plan. Book one and we'll work through your actual situation.