Benefit in Kind Calculator
Calculate BIK tax on company cars, medical insurance, gym memberships, and other employer benefits for 2025/26. See your BIK rate, taxable value, income tax cost, employer Class 1A NI (15%), monthly take-home impact, and true total package value.
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How to Use This Calculator
Company Car tab
Enter your car’s P11D value (list price including options and VAT, excluding first registration fee and road tax), select the fuel type, and enter the CO2 emissions from the V5C or spec sheet. For plug-in hybrids emitting 1–50 g/km, enter the official electric range. The calculator looks up the correct 2025/26 BIK percentage, applies any diesel supplement, and shows your annual and monthly tax cost. Toggle “employer provides fuel” to see the additional fuel benefit charge (£28,200 multiplier).
Other Benefits tab
Select a benefit type from the dropdown: private medical insurance, gym, dental, company phone, van, interest-free loan, or other. Enter the P11D value (cost to employer). The calculator shows your income tax, employer Class 1A NI at 15%, and compares the tax cost against buying the benefit privately. Vans use flat-rate BIK charges (£4,020 for non-electric, £0 for electric). Loans below £10,000 are exempt.
Total Package tab
Enter your base salary and add all benefits in your package. The calculator computes total income tax on salary plus BIKs, employee NI, and shows your true take-home pay. Use this to understand the real value of a job offer that includes company benefits, or to compare two packages with different salary-and-benefits mixes.
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The Formula
Company car BIK tax is calculated by multiplying the P11D value by the appropriate BIK percentage (determined by CO2 emissions and fuel type), then applying your marginal tax rate:
Fuel Benefit = £28,200 × BIK Percentage (only if employer provides fuel)
Your Tax = Taxable BIK Value × Marginal Tax Rate (20% / 40% / 45%)
Employer Class 1A NI = Taxable BIK Value × 15%
Other Benefits: Tax = P11D Value (cost to employer) × Marginal Tax Rate
Interest-Free Loan BIK = Loan Balance × 2.25% (only if balance > £10,000)
Van BIK = £4,020 flat rate (non-electric) or £0 (electric)
For a higher-rate taxpayer with a £35,000 electric company car: BIK = £35,000 × 3% = £1,050 taxable value. Tax = £1,050 × 40% = £420/year (just £35/month). The same car on petrol at 130 g/km would cost £4,480/year in BIK tax.
Diesel cars that are not RDE2 compliant pay an additional 4% BIK supplement (capped at the 37% maximum). RDE2-compliant diesels are taxed at the standard petrol rate.
Example
James — Regional Sales Manager, 42, Birmingham
James earns £55,000 and has a company car plus medical insurance. He is a higher-rate (40%) taxpayer.
Company Car tab
James pays just £504 per year (£42/month) for a £42,000 electric car. A comparable petrol car emitting 140 g/km would cost him £5,544 in BIK tax — over 10 times more.
Other Benefits tab
Total Package tab
James’s total package is worth £98,500 but his BIK tax on all benefits is just £1,104/year. The electric car BIK makes the package exceptionally tax-efficient.