Enter the taxable cash equivalent of the benefit. For most benefits this is the cost to the employer minus any amount made good by the employee.
Employee Tax Calculation
Adjust inputs to see your results
Employer Class 1A NI
Employer's National Insurance on the benefit
Benefits that aren't cash — but are still taxed
A Benefit in Kind (BIK) is any non-cash perk provided by an employer that has a monetary value. HMRC taxes both the employee and the employer on most benefits.
Employee pays Income Tax
The cash equivalent of the benefit is added to your taxable income. You pay income tax on that value at your marginal rate — 20%, 40% or 45%.
Employer pays Class 1A NI
Employers pay Class 1A National Insurance at 15% on the cash equivalent of most benefits. This is separate from the employee's tax.
Reported on P11D
Benefits are reported to HMRC annually on a P11D form (or via payroll). The deadline is 6 July after the end of the tax year.
Company Car Appropriate Percentages
Used to calculate BIK value from list price| Fuel Type | CO₂ / Range | 2025/26 % | 2026/27 % |
|---|---|---|---|
| Fuel / CO₂ | — | 25/26 | 26/27 |
| Electric | 0 g/km | 3% | 4% |
| Hybrid | 130+ mile range | 3% | 4% |
| Hybrid | 70–129 mile range | 6% | 7% |
| Hybrid | 40–69 mile range | 9% | 10% |
| Hybrid | 30–39 mile range | 13% | 14% |
| Hybrid | Under 30 miles | 15% | 16% |
| Petrol / Diesel | 1–50 g/km | 16% | 17% |
| Petrol / Diesel | 51–54 g/km | 16% | 17% |
| Petrol / Diesel | 55–59 g/km | 17% | 18% |
| Petrol / Diesel | 60–64 g/km | 18% | 19% |
| Petrol / Diesel | 65–69 g/km | 19% | 20% |
| Petrol / Diesel | 70–74 g/km | 20% | 21% |
| Petrol / Diesel | 75–79 g/km | 21% | 21% |
| Petrol / Diesel | 80–84 g/km | 22% | 22% |
| Petrol / Diesel | 85–89 g/km | 23% | 23% |
| Petrol / Diesel | 90–94 g/km | 24% | 24% |
| Petrol / Diesel | 95–99 g/km | 25% | 25% |
| Petrol / Diesel | 100–104 g/km | 26% | 26% |
| Petrol / Diesel | 105–109 g/km | 27% | 27% |
| Petrol / Diesel | 110–114 g/km | 28% | 28% |
| Petrol / Diesel | 115–119 g/km | 29% | 29% |
| Petrol / Diesel | 120–124 g/km | 30% | 30% |
| Petrol / Diesel | 125–129 g/km | 31% | 31% |
| Petrol / Diesel | 130–134 g/km | 32% | 32% |
| Petrol / Diesel | 135–139 g/km | 33% | 33% |
| Petrol / Diesel | 140–144 g/km | 34% | 34% |
| Petrol / Diesel | 145–149 g/km | 35% | 35% |
| Petrol / Diesel | 150–154 g/km | 36% | 36% |
| Petrol / Diesel | 155+ g/km | 37% | 37% |
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