If your company car (owned, leased or hired by the company) is available to you for personal use, then a benefit in kind arises and is taxed on your personally.
In order to work out the value of the benefit, you do need to collate the following information:
o Find the price of the car – this is the list price when new and you should add any additional accessories if these weren’t included in the list price.
o If you have made a capital contribution to the car, this should be deducted from the list price.
o The list price is then multiplied by a percentage based on the car’s CO2 emissions or the range that the electric car can travel.
There may be further adjustments to this figure if the car was not available during the tax year.
Petrol powered and hybrid powered cars for the tax year 2025 to 2026
CO2 emissions (grams per km)
Electric mileage range
NEDC %
WLTP %
—
3
3
1 to 50
130 and above
3
3
1 to 50
70 to 129
6
6
1 to 50
40 to 69
9
9
1 to 50
30 to 39
13
13
1 to 50
less than 30
15
15
51 to 54
—
16
16
55 to 59
—
17
17
60 to 64
—
18
18
65 to 69
—
19
19
70 to 74
—
20
20
75 to 79
—
21
21
80 to 84
—
22
22
85 to 89
—
23
23
90 to 94
—
24
24
95 to 99
—
25
25
100 to 104
—
26
26
105 to 109
—
27
27
110 to 114
—
28
28
115 to 119
—
29
29
120 to 124
—
30
30
125 to 129
—
31
31
130 to 134
—
32
32
135 to 139
—
33
33
140 to 144
—
34
34
145 to 149
—
35
35
150 to 154
—
36
36
155 to 159
—
37
37
160 to 164
—
37
37
165 to 169
—
37
37
170 and above
—
37
37
Calculation example
A director has a company car with a list price of £38,639.
Its CO2 emissions are 119 g/km.
If we look at the table for 2025/26 we will multiply the list price by 29% so the BIK is £11,205 if you had private use of the vehicle for the full tax year.
If the car is diesel, then there is a 4% supplement added – so the percentage applied would be 33%. (The maximum percentage that can be applied to the list price is 37%.)
Therefore the director will pay personal tax on this amount, if he is higher rate taxpayer, this will be £11,205 x 40% = £4,482.00.
The company will also pay Class 1A National Insurance of £11,205 x 15.00% = £1,680.75.
The amount of £11,205 will be required to be reported on your 2025/26 Plld form- also on the employment pages of your 2025/26 self-assessment return.