UK EV Company Car Tax & Benefit-in-Kind (BIK) Calculator 2026

Comprehensive 2026/27 financial guide to Electric Vehicle (EV) company car tax: Benefit-in-Kind (BIK) tax rate (4% in 2026/27), EV salary sacrifice arrangements, employer 15% Class 1A NI savings, and workplace charging tax exemptions.

1. EV BIK Tax Rates Trajectory (2025 to 2028)

Electric Vehicles (EVs) provided by employers remain the most tax-efficient company car choice under HMRC Benefit-in-Kind (BIK) regulations. While petrol/diesel cars incur BIK rates up to 37%, pure electric cars benefit from ultra-low BIK percentage bands (4% in 2026/27).

Tax Year Period	Pure EV (0g/km CO2) BIK Rate	Annual BIK Tax Cost on £40,000 EV (20% Taxpayer)
2024 / 2025	2% BIK Rate	£160 / year (£13.33 / month)
2025 / 2026	3% BIK Rate	£240 / year (£20.00 / month)
2026 / 2027	4% BIK Rate	£320 / year (£26.66 / month)
2027 / 2028	5% BIK Rate	£400 / year (£33.33 / month)

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Key Takeaways

Pure electric company cars pay 3% BIK tax in 2025/26 (rising by 1% annually to 5% by 2027/28).
EV salary sacrifice allows employees to pay for an EV out of pre-tax gross salary.
Workplace EV charging provided by an employer is 100% tax-free for employees.
Employers save Class 1A National Insurance compared to paying equivalent cash salary.
BIK tax calculation formula is: List Price (P11D) x BIK % x Marginal Income Tax Rate.

Related UK Driving & Transport Guides

UK DVLA Road Tax VED Rates & Electric Vehicle Calculator →UK Company Car BIK Tax: Electric vs Hybrid Comparison Guide →

Frequently Asked Questions (6 Verified Answers)

The BIK rate for pure electric cars (0g/km CO2) is 3% in 2025/26, rising to 4% in 2026/27 and 5% in 2027/28.

Multiply the car's official P11D list price by the EV BIK percentage, then multiply by your personal Income Tax bracket (20%, 40%, or 45%).

No, electricity provided at work by an employer to charge an employee's electric car is completely exempt from BIK tax.

Employees sacrifice gross salary before tax and NI to cover lease, insurance, and maintenance, saving up to 30-45% compared to private personal leasing.

No, Plug-in Hybrid (PHEV) BIK rates range from 2% to 14%+ depending on their zero-emission electric range (miles).

P11D value is the manufacturer list price of the vehicle including options, VAT, and delivery fees, excluding first-year registration and road tax.