HMRC EV BIK 2026/274% EV BIK RateFrom 2% to 5% Roadmap
UK EV Company Car Tax (BIK) Calculator 2026/27
Calculate your 2026/27 electric company-car BIK tax from the P11D value, 4% EV appropriate percentage and your marginal Income Tax rate, then compare it with another car using its actual BIK percentage.
Check Your 2026/27 EV Company Car Tax
Enter the vehicle's P11D value and your marginal Income Tax rate to estimate the annual and monthly Benefit-in-Kind tax. You can also enter the actual BIK percentage of another company car to make a meaningful comparison.
BIK Tax & Savings Estimator
Compute annual and monthly EV company car BIK tax and compare against another vehicle
Enter the actual BIK percentage for the petrol, diesel or hybrid comparison vehicle.
2026/27 EV BIK Rate
4% Zero-Emission Rate
EV Company Car BIK Tax Result:
Saves £4,320/yr vs comparisonBIK Taxable Value
£1,800
Annual P11D %Annual EV BIK Tax
£720
Net Tax CostMonthly BIK Tax
£60/mo
PAYE Payroll CostComparison Car Tax
£5,040
Comparison BIKHow the EV Company Car BIK Calculation Works
1. P11D VALUE
£45,000
Statutory list price including VAT & options.
2. EV RATE
4%
2026/27 appropriate percentage for pure EVs.
3. BENEFIT VALUE
£1,800
£45,000 × 4% taxable benefit value.
4. INCOME TAX
40% Rate
£1,800 × 40% = £720 annual tax cost.
Note: This is a full-year calculation. Actual benefits can require statutory adjustments for partial-year availability and employee capital contributions.
2026/27 EV & Plug-in Hybrid BIK Rates
HMRC appropriate percentages for zero-emission and plug-in hybrid company cars for the 2026/27 tax year.
| CO₂ Emissions | Electric Zero-Emission Range | 2026/27 BIK Rate |
|---|---|---|
| 0g/km (Pure Electric) | All zero-emission EVs | 4% |
| 1–50g/km (Plug-in Hybrid) | 130 miles or more | 4% |
| 1–50g/km (Plug-in Hybrid) | 70 to 129 miles | 7% |
| 1–50g/km (Plug-in Hybrid) | 40 to 69 miles | 10% |
| 1–50g/km (Plug-in Hybrid) | 30 to 39 miles | 14% |
| 1–50g/km (Plug-in Hybrid) | Under 30 miles | 16% |
Workplace Charging & Salary-Sacrifice Rules
Workplace Charging
Employer-provided workplace charging for electric company cars is completely tax-free when statutory conditions are met.
Home Charging
HMRC provides specific exemption treatment for electricity used to charge a company car at home.
Salary Sacrifice
EV salary sacrifice allows employees to exchange pre-tax salary for a car, saving Income Tax and Employee NIC.
Low Rate, Not Free
The 4% BIK rate drastically reduces taxable company-car benefits, but the benefit itself is not completely tax-free.
Frequently Asked Questions (6 FAQs)
For a zero-emission company car, the appropriate percentage is 4% for 2026/27. The rate was 2% in 2024/25 and 3% in 2025/26, and is scheduled to rise to 5% in 2027/28.
For a full year, the taxable company-car benefit is broadly the car's P11D/list-price figure multiplied by the applicable appropriate percentage. The employee's Income Tax cost is then based on their marginal Income Tax rate. Availability periods, capital contributions and other statutory adjustments can affect the final figure.
The company-car list-price calculation generally includes the UK list price, VAT, relevant car taxes and delivery charges, plus taxable accessories. Certain items such as the first registration fee are excluded. Employee capital contributions can reduce the calculation subject to statutory limits.
Some employer-provided charging can be exempt, but it depends on the circumstances. Workplace charging can qualify for an exemption where the statutory conditions are met. HMRC also provides specific treatment for electricity used to charge a company car at home. The result should not be described as a blanket exemption for every charging arrangement.
Yes, some plug-in hybrids can have substantially lower appropriate percentages depending on CO2 emissions and electric-only range. For 2026/27, a car emitting 1–50g/km with an electric range of 130 miles or more has a 4% appropriate percentage; shorter ranges have higher percentages.
No. Salary sacrifice can make an electric company car tax-efficient because the employee may exchange salary for the car while the company-car benefit is taxed separately. However, Optional Remuneration Arrangement rules and the precise salary-sacrifice terms must be considered. The benefit is not simply tax-free.
Official HMRC Sources:
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BIK Escalation Roadmap (2024–2028)
2024/2025 Tax Year2% BIK
2025/2026 Tax Year3% BIK
2026/2027 Tax Year4% BIK
2027/2028 Tax Year5% BIK
EV BIK rates increase by 1% annually, maintaining major tax savings over petrol/diesel vehicles.
EV vs Petrol BIK Comparison
Pure EV (0g/km CO2)3% – 4% BIK
PHEV Hybrid (130+ mi)3% – 5% BIK
Petrol / Diesel Avg25% – 37% BIK
💡 Salary Sacrifice: Pre-tax EV salary sacrifice saves up to 42% in Income Tax & NIC.
Key EV Tax Exemptions
- Workplace Charging: 100% tax-free benefit for employees.
- Corporation Tax: 100% First Year Capital Allowances (FYA).
- Class 1A NIC: Paid only on the low 4% BIK value.