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Tax & Investing
Calculate the annual tax cost of your company car at Scottish income tax rates, and see how your BIK compares to equivalent English rates.
The car's list price including extras (shown on the P11D form from your employer)
Found on the V5C logbook, dealer spec sheet, or DVLA vehicle enquiry
Used to determine your Scottish income tax band for calculating the BIK cost
A company car is a “benefit in kind” — HMRC treats it as additional income and taxes it through your PAYE code. The taxable value depends on two things: the car’s P11D value (list price plus accessories) and the BIK percentage, which is set by HMRC based on CO₂ emissions.
Each year HMRC publishes BIK percentage rates by CO₂ band. For 2026/27, the rates run from 3% for pure electric vehicles to 37% for cars emitting 160g/km or more. Diesel cars that don’t meet the RDE2 emissions standard pay a 4% surcharge on top (capped at 37%).
| CO₂ (g/km) | Petrol BIK % | Diesel BIK % |
|---|---|---|
| 0 (Electric) | 3% | N/A |
| 1–50 (EV range >130mi) | 3% | 7% |
| 51–54 | 15% | 19% |
| 75–79 | 20% | 24% |
| 100–104 | 25% | 29% |
| 120–124 | 29% | 33% |
| 140–144 | 33% | 37% |
| 160+ | 37% | 37% (capped) |
Because BIK income is taxed at your Scottish income tax rate, Scottish employees above the Higher rate threshold pay more than English equivalents at the same gross salary. At £45,000 salary: Scotland 42% vs England 20%. The same car costs a Scottish employee £1,100 more per year at a 25% BIK rate on a £40,000 car.
With a 3% BIK rate, a £40,000 electric car creates a taxable benefit of £1,200 — costing a Scottish 42% taxpayer just £504/year. A comparable petrol car at 120g/km (29% BIK) would cost £4,872/year in tax. The saving of £4,368/year is the core reason salary sacrifice EV schemes are so popular. The BIK rate for electric cars is frozen at 3% through 2026/27 and rises only to 5% by 2028/29.
HMRC adjusts your tax code to collect BIK tax. Your employer receives an updated code (e.g. 807L instead of 1257L) that reduces your tax-free income by the BIK value. Tax is then collected evenly through your monthly pay rather than as a lump sum. Check your payslip code matches what this calculator expects.
Answers to common questions about this calculator.
Calculate your LBTT on any Scottish property purchase, including first-time buyer relief and ADS.
💷See your Scottish income tax across all 6 bands, with an England comparison built in.
💰See your exact take-home pay monthly, weekly, daily, and hourly after all Scottish deductions.
This calculator provides estimates only and does not constitute financial or tax advice. Always verify with Revenue Scotland, HMRC, or mygov.scot, and speak to a qualified financial adviser for advice specific to your circumstances.