Company Car Tax Calculator: UK

Calculating your company car tax can be a tricky task, as you’ll need to know the Co2 and the P11d values of the vehicle, along with your tax band. Luckily we have a solution to help.

We've teamed up with Comcar to build the below calculator that allows you to work out everything you need to know about company car tax and any tax implications of driving a company car.

How does our Company Car Tax Calculator work?

Our Company Car Tax Calculator takes into account various factors to provide you with an accurate estimate of your tax liability. Here's how it works:

  1. Vehicle details: Begin by entering the details of the company car you drive or are considering. This includes the make and model as well as the fuel type, then click Go. You can then select the exact edition of the car you have for even more accurate results.
     
  2. Employee contributions: You can then enter any employee contributions that you make to your company car, such as any capital contribution up to the maximum of £500. Any initial payment by the driver will reduce the price of the car for tax purposes applied to that driver. There’s also the option to add any payments made for private use. If your employer requires an annual private use contribution towards the car, enter the amount to reduce the payable tax.
     
  3. Add extra vehicle options: The Add Vehicle Options button allows you to mention any optional extras that have been fitted to the basic vehicle, such as driver assistance systems, interior equipment, paint, seats, wheels, warranty and more. This is because company car tax considers the fully configured vehicle, and these optional extras can affect the price. Once done, click Quick Tax Calculation.
     
  4. Tax calculation: Once you have entered all the required information, our calculator will generate a detailed breakdown of your company car tax liability via vehicle benefit tax and fuel benefit tax figures across the upcoming tax year periods. This includes things like the P11D value, percentage charge, Benefit in Kind amounts, tax payable at the basic rate and tax payable at 40%.
     
  5. View the effect on net pay: There’s also the option to find out how a company car will alter your net pay. Here you can enter your annual salary and add any contributions as well as the vehicle registration date, and the calculator will give you a figure on how much additional tax you can expect to pay from the use of the vehicle. You can change the data to show a breakdown for different tax years too for a thorough tax breakdown and detailed forecast. The calculator will give you a “Total on payslips” figure too, so you can see exactly how much you’ll be taking home each year after tax.
     
  6. Make an enquiry: After reading through a full breakdown of the assumptions used in our calculations, including the value of the car, CO2 emissions, fuel consumption, non-taxable items and more, you can send a Calculation Enquiry if there is something you don't understand or think might be incorrect. Alternatively, you can click to calculate tax on another car model instead.

Benefits of our Company Car Tax Calculator

There are plenty of reasons why our company car tax calculator can help you, including:

  • Accuracy: Our calculator uses up-to-date tax rates and BiK percentages to ensure accurate calculations, providing you with a reliable estimate of your company car tax liability.
     
  • Efficiency: With a streamlined user interface, our calculator makes it quick and easy to determine your tax obligations. You can obtain the results within seconds, saving you valuable time and effort.
     
  • Financial planning: The calculator helps you plan your finances effectively. By understanding the tax implications associated with a company car, you can make informed decisions about your budget and expenses. This knowledge empowers you to assess the financial feasibility of a company car and consider alternative options if necessary.
     
  • Comprehensive analysis: Our calculator provides a comprehensive breakdown of your tax liability, allowing you to understand all of the factors influencing the final amount.
     
  • Comparison and decision making: If you have multiple company car options, our calculator allows you to compare the tax liabilities associated with each vehicle. This enables you to make data-driven decisions and choose the car that offers the most favourable tax outcome, potentially saving you money in the long run.
     
  • Customisation: By offering optional fields for additional information, our calculator allows you to personalise the calculation based on your unique circumstances. This ensures that the results are tailored to your specific situation and are thus much more accurate.
     

Please remember that our Company Car Tax Calculator is designed to provide estimates and should not be considered professional tax advice. It's always advisable to consult with a qualified tax professional for personalised guidance based on your individual circumstances.

We hope you find our Company Car Tax Calculator helpful in understanding your company car tax obligations. Start using it now to gain valuable insights into the financial implications of driving a company car.

Need to work out estimated running costs for your next business car? Take a look at our fuel cost calculator and find out how much you might be paying per month for fuel, to help you make an informed business decision.

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