Work out the annual tax on a UK company car (benefit-in-kind), or the road tax (VED) on a vehicle you own. Electric and hybrid cars are taxed far more lightly — see the difference.
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Plug-in hybrids: the longer the electric range, the lower the benefit rate.
Auto-set from fuel, CO₂ and range — edit if you know your exact band.
Annual company car tax
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Taxable benefit
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Benefit-in-kind rate
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Annual tax
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Per month
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Standard rate
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Expensive-car supplement
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Total per year
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Per month
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UK vehicle tax at a glance — 2026/27
Company car tax = list price (P11D) × benefit-in-kind % (by CO₂) × your income tax rate.
Electric cars: 4% benefit rate for 2026/27 (up from 3%) — still a major saving versus petrol/diesel (which can reach 37%).
Road tax (VED): standard £200/year for most cars; +£440/year "expensive car supplement" for list prices over £40,000 — £50,000 for EVs (years 2–6).
A higher-rate taxpayer with a £40,000 electric company car pays tax on just a 4% benefit.
Taxable benefit (4%)£1,600
× 40% tax rate£640
Annual tax£640
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Petrol company car, £40,000
The same £40,000 list price as a petrol car emitting 120 g/km lands around a 29% benefit — over six times the electric tax.
Taxable benefit (~29%)£11,600
× 40% tax rate£4,640
Annual tax£4,640
How company car tax works
A company car you can use privately is a taxable "benefit in kind". The taxable value is the car's list price when new (its P11D value) multiplied by a percentage set by its CO₂ emissions — from 3% for a fully electric car up to 37% for the highest-emitting petrol and diesel models. You then pay income tax on that benefit at your usual rate. This is why electric company cars have become so popular: the benefit rate is a fraction of a petrol equivalent.
Road tax (VED) is separate
Vehicle Excise Duty is what you pay to tax a car you own. After the first year (which is based on CO₂ and can be high for new cars), most cars move to a flat standard rate — £200 a year for 2026/27 — with an extra £440 "expensive car supplement" for vehicles that cost over £40,000 new (£50,000 for electric cars), payable in years two to six. From April 2025, electric cars pay VED too.
List price (P11D) × a CO₂-based benefit-in-kind percentage × your income tax rate. Electric cars use a 4% rate for 2026/27.
How much is electric company car tax?
On a £40,000 EV, a 40% taxpayer pays about £640 a year (4% benefit) — versus thousands for a petrol equivalent.
What is the standard road tax for 2026/27?
£200 a year for most cars, plus a £440 expensive-car supplement for list prices over £40,000 (£50,000 for EVs) in years two to six.
Are the benefit-in-kind percentages exact?
The benefit rate is auto-estimated from fuel and CO₂ and is indicative. For petrol/diesel and especially plug-in hybrids it depends on exact emissions and electric range — enter your precise band if you know it.
Estimate only — UK. Benefit-in-kind percentages are indicative; the exact band depends on CO₂, fuel type and (for plug-in hybrids) electric range, and there is a 4% diesel surcharge for non-RDE2 cars (capped at 37%). VED first-year (showroom) rates are not shown. Scotland uses different income tax rates. Verify with HMRC/DVLA. Not tax advice.