Example result based on the prefilled values.
| Result | Value |
|---|---|
| Cash equivalent | £1,400.00 |
| Annual BIK tax | £280.00 |
| Monthly | £23.33 |
Continue your plan
Useful next calculations
Rates & sources2026/27
Company-car cash equivalent is P11D list price × appropriate percentage. Zero-emission cars are 4% for 2026/27.
| Band / figure | Rate |
|---|---|
| Zero-emission appropriate % | 4% |
| Tax | cash equivalent × income-tax rate |
Source: GOV.UK — Tax on company cars — source checked for 2026/27.
When to use this calculator
- Before accepting a pay change, bonus, pension contribution, or salary-sacrifice option.
- When you want to compare employed, self-employed, or dividend-based income scenarios.
- When you need a simple take-home estimate before running payroll or filing returns.
- When you are approaching the £100,000 income level and want to understand the personal allowance taper effect.
- When you are planning a salary sacrifice arrangement and need to see the net pay impact before agreeing terms.
A realistic UK planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
| Input | Value |
|---|---|
| P11D / list price (£) | £0.30 |
| BIK percentage | 35 |
| Income tax rate (%) | £35,000 |
After entering these figures, review cash equivalent, annual bik tax and monthly together rather than in isolation — each metric tells a different part of the story. Then rerun the tool with one input adjusted to see which variable has the biggest effect on all three outputs before you settle on a plan.
How to read your results
Cash equivalent
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Annual BIK tax
Review this figure alongside your gross income so you can understand the true cost of deductions and plan around any thresholds before the tax year closes. If the figure looks higher than expected, check whether any pension or gift-aid contributions could reduce your taxable income.
Monthly
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Method & assumptionsAuthoritative sources
UK company-car benefit-in-kind tax is the P11D list price multiplied by the appropriate BIK percentage, then taxed at your income-tax rate. For 2026/27 the appropriate percentage for a zero-emission car is 4%. Petrol and diesel percentages depend on CO2 and electric range; enter the official percentage from HMRC’s company-car table rather than guessing.
This tool does not add Class 1A employer NI, fuel benefit, vans, or private-use adjustments. Confirm the list price, accessories and the appropriate percentage with payroll. Source: GOV.UK tax on company cars.
Common mistakes
- !Entering gross income when you really want take-home pay, or vice versa.
- !Ignoring pension contributions, deductions, or local tax rules that change the result.
- !Comparing monthly and annual figures without standardising them first.
- !Overlooking the National Insurance threshold changes that apply mid-year when rates or bands are adjusted in a Budget.
- !Assuming a salary sacrifice benefit reduces take-home pay by the full gross amount, rather than only the after-tax cost.
What to do next
- Check the same scenario with related pay or deduction calculators to see the full picture.
- Keep a copy of the assumptions you used so you can compare next tax year or pay period accurately.
- Read the related guides below if you are choosing between multiple income or deduction options.
- If you are self-employed, run the self-employment tax calculator alongside this result to compare the net position against employed income.
- Check whether increasing your pension contribution by even one or two percent changes the take-home significantly — use the pension calculator next.
Frequently asked
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