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UK company car tax bands: 2025 - 2030

UK company car tax bands: 2025 - 2030

Do you receive benefits or perks on top of your salary? If you have a company car for private use, you will have to pay a Benefit in Kind (BIK) contribution, or otherwise known as company car tax.

James Holland

Every car has a BIK percentage banding. This is based on CO2 emissions, and a P11D value, which is the list price, including extras and VAT, but without the first year registration fee and vehicle tax.

How do I calculate my BIK tax?

To calculate the company car - or BIK - tax, multiply the P11D value by the BIK percentage banding, then multiply that figure by your tax band - i.e. 20% or 40%. This will give you your annual tax. Divide by 12 to get your monthly outgoing.

The BIK bands are set by HMRC and are based on a vehicle's CO2 emissions. A rate applies to electric or alternative fuel cars that emit zero CO2 emissions.

If you drive a hybrid car that emits less than 50g/km, the rate is based on the zero-emissions range. This is the distance the car can go on electric power before its batteries need recharging.

The Government announced in the 2024 Autumn Budget new company car tax rates for 2028/29 and 2029/2030.

The rates for the current tax year are highlighted in bold, below.

The table can be scrolled horizontally to view more years.

CO2 (g/km)

Electric range (miles)

2024/25 (%)

2025/26 (%)

2026/27 (%)

2027/28 (%)

2028/29 (%)

2029/30 (%)

0

N/A

2

3

4

5

7

9

1-50

>130

2

3

4

5

18

19

1-50

70-129

5

6

7

8

18

19

1-50

40-69

8

9

10

11

18

19

1-50

30-39

12

13

14

15

18

19

1-50

<30

14

15

16

17

18

19

51-54

 

15

16

17

18

19

20

55-59

 

16

17

18

19

20

21

60-64

 

17

18

19

20

21

22

65-69

 

18

19

20

21

22

23

70-74

 

19

20

21

21

22

23

75-79

 

20

21

21

21

22

23

80-84

 

21

22

22

22

23

24

85-89

 

22

23

23

23

24

25

90-94

 

23

24

24

24

25

26

95-99

 

24

25

25

25

26

27

100-104

 

25

26

26

26

27

28

105-109

 

26

27

27

27

28

29

110-114

 

27

28

28

28

29

30

115-119

 

28

29

29

29

30

31

120-124

 

29

30

30

30

31

32

125-129

 

30

31

31

31

32

33

130-134

 

31

32

32

32

33

34

135-139

 

32

33

33

33

34

35

140-144

 

33

34

34

34

35

36

145-149

 

34

35

35

35

36

37

150-154

 

35

36

36

36

37

38

155-159

 

36

37

37

37

38

39

160-164

 

37

37

37

37

38

39

165-169

 

37

37

37

37

38

39

170+

 

37

37

37

37

38

39

A 4% surcharge applies to diesel vehicles not meeting the RDE2 standard.

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