Calculator
Car benefit BIK calculator
Estimate the monthly and annual tax on an employer-provided electric car benefit. This is commonly called company car tax or BIK tax.
How this BIK calculator works
If you receive an employer-provided car as a non-cash benefit, the car can create a taxable BIK. The Income Tax attributable to that benefit is commonly called BIK tax or company car tax. For battery electric vehicles, the BIK percentage is set by HMRC and tends to be far lower than petrol or diesel equivalents.
Enter your gross annual income and the car’s P11D value, then we estimate your monthly BIK tax using your headline income tax band.
Calculation method
EV BIK tax calculator (UK)
Step 1
Your gross annual income and tax regime.
About £80,000 per year.
Step 2
Car list price and BIK percentage.
Roughly £50,000.
Battery electric car?
If yes, we apply the current BEV BIK rate automatically.
Step 3
Your estimated BIK tax.
Estimated BIK tax
£66.67 / month
That is £800 per year.
Based on a 4% BIK rate and a 40% income tax rate.
Taxable benefit: £2,000 per year
Calculation: P11D × BIK% × tax band
Notes
For BEVs, the calculator uses the HMRC BIK rate for the current UK tax year.
Your salary sacrifice price already accounts for the vehicle cost; BIK is the separate tax on the benefit of receiving the car.
Figures are estimates for guidance only; payroll settings and personal circumstances can change the exact outcome.
Why EV BIK is so attractive
Even though an EV is taxed as a company car benefit, the BIK percentage for BEVs is intentionally low. That keeps the tax cost small, which is why employer-provided EVs through salary sacrifice usually remain far cheaper than leasing privately.
BIK calculator FAQs
Want help modelling BIK impact at scale?
If you are a UK employer planning an EV salary sacrifice scheme, I can help you model affordability and uptake across salary bands, including BIK projections over multiple tax years.