Electric company car tax calculator, 2026/27
If your limited company provides you with an electric car, you and the company both pay tax on the benefit. Enter the list price and your income tax band to see the personal and employer National Insurance cost for 2026/27.
The electric company car tax calculator runs on the rates and thresholds HMRC has published for the 2026/27 tax year, so the figures you see reflect the position your company is actually filing on rather than a historic set of bands. Change any input and the result recalculates immediately, with no sign-up and nothing sent anywhere.
If you are a director of a UK limited company, use it as a first look before a decision rather than as the decision itself. Zero emission appropriate percentage of 4.0% for 2026/27, applied to the P11D list price. Real company positions bring in other income, reliefs, group structures and prior year adjustments that a single page of inputs cannot see, which is why the workings are written out below under corporation tax & limited company. Read those, then check the numbers against your own accounts, and speak to us if anything looks materially different from what you expected.
Last reviewed 12 September 2026 for the 2026/27 tax year. Reviewed by Waqas Sagar, Member of ICAEW, Fellow of ACCA, Fellow of AAT.
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Result, 2026/27
Taxable benefit in kind
4.0% of list priceYour annual tax on the benefit
At your 40.0% marginal rateEmployer Class 1A NIC
15.0% on the benefit valueMonthly cost to you (via payroll)
Illustration only, figures are based on the rates you have selected and the information entered. Please check your own position with us before acting.
Estimates for the 2026/27 tax year using published GOV.UK rates. Switch between 2026/27 and 2025/26 above.
How this is calculated
The benefit in kind is the car's list price (including delivery and most factory options) multiplied by the appropriate percentage for its CO2 emissions. For a fully electric car in 2026/27 that percentage is 4.0%, far below the up to 37.0% charged on higher-emission petrol or diesel cars.
You pay income tax on that benefit value at your own marginal rate through your tax code or self assessment, and the company pays Class 1A employer National Insurance on the same figure, currently reported and paid annually via the P11D process.
There is no fuel benefit charge for a pure electric car because there is no fuel benefit multiplier applied; charging costs reimbursed by the company for business mileage are generally tax free if paid at the advisory electricity rate.
Company car versus personal ownership
Electric cars remain the one scenario where routing a car through the company is usually cheaper than personal ownership, because the appropriate percentage is so low compared with combustion vehicles. The company also gets a corporation tax deduction and can often claim 100% first-year capital allowances on a new zero-emission car.
Directors of very profitable companies sometimes find the combined personal tax and employer NIC still exceeds the cost of running the same car personally and claiming the 45p/25p mileage rate for business trips, particularly for low-mileage users, so it is worth comparing both routes before committing to a lease.
Practical points for directors
The benefit is time-apportioned if the car is only available for part of the year, and reduced for any capital contribution you make towards the purchase price, up to a cap. Salary sacrifice arrangements funding an electric car are still one of the few salary sacrifice schemes HMRC does not restrict.
Keep a business mileage log even for an electric car; while there is no fuel benefit, HMRC can still ask you to demonstrate a car is genuinely available for business use if the arrangement is ever queried.
What this means for your company
Treat the result as a planning figure for the 2026/27 tax year. If it changes what you were about to do, take a director's salary, a dividend, a large asset purchase or a filing decision, check it against your own accounts first. We can review the position with you and confirm the tax treatment before you commit.
Frequently asked questions
What is the benefit in kind rate for an electric company car in 2026/27?
The appropriate percentage for a zero emission car is 4.0% of the list price for 2026/27, which is charged as a taxable benefit on the director or employee.
Does the company pay National Insurance on an electric company car?
Yes. The company pays Class 1A employer National Insurance at 15.0% on the same benefit value used for the employee's income tax charge, reported annually on form P11D(b).
Is charging an electric company car at home tax free?
Reimbursement for business mileage at the advisory electricity rate is tax free. Reimbursing all home charging costs without splitting business and private use can create an additional taxable benefit, so keep mileage records.
Can the company claim capital allowances on an electric car?
A new, unused zero-emission car generally qualifies for a 100% first-year allowance, so the full cost can be deducted from profits in the year of purchase, subject to the car being genuinely new rather than used.
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