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Company-car tax calculator for 2027/28

Calculate the company-car Benefit in Kind (BiK), see how the taxable value is worked out and understand how it could flow through payroll from April 2027.

Free employer guidance · Based on current HMRC information · Reviewed 11 August 2026

In simple terms

Status: HMRC interim guidance

Start with the registration or enter the vehicle details manually. Workmax derives the provisional 2027/28 company-car percentage from fuel type, CO₂ emissions and electric range where relevant. Add the statutory price, employee-payment and availability details to see the taxable benefit and illustrative payroll treatment.

Step 1

Look up the vehicle

The registration is sent only to the server-side vehicle provider. It is not placed in the URL, stored or sent to analytics.

2. Complete the benefit details

Confirm the vehicle information and complete the benefit details that DVLA cannot provide.

2027/28 Benefit in Kind percentage

27%

27% 2027/28 band for 108g/km CO₂.

Advanced: enter a confirmed percentage manually

Illustrative 2027/28 result

£10,800.00 a year

The calculation shows the statutory adjustments separately before connecting the annual value to payroll.

Relevant price

£40,000.00

BIK percentage

27%

Each monthly payroll

£900.00

20% illustrative tax

£180.00

1. Calculate the relevant price

List price
£40,000.00
Accessories
+ £0.00
Capital contribution allowed
− £0.00
Relevant price
£40,000.00

2. Calculate the taxable benefit

Relevant price × 27%
£10,800.00
Availability adjustment (366 of 366 days)
− £0.00
Private-use payments
− £0.00
Annual cash equivalent
£10,800.00

Rules: company-car-2027/28-v1 · Class 1A is not shown until the applicable 2027/28 rate is confirmed in the Workmax rules manifest.

From benefit to payroll

How this could flow through payroll

Annual taxable benefit

£10,800.00

Payrolls in illustration

12

Benefit each payroll

£900.00

Employer Class 1A

Awaiting confirmed rate
View payroll schedule
PayrollBenefitYTD
Payroll 1£900.00£900.00
Payroll 2£900.00£1,800.00
Payroll 3£900.00£2,700.00
Payroll 4£900.00£3,600.00
Payroll 5£900.00£4,500.00
Payroll 6£900.00£5,400.00
Payroll 7£900.00£6,300.00
Payroll 8£900.00£7,200.00
Payroll 9£900.00£8,100.00
Payroll 10£900.00£9,000.00
Payroll 11£900.00£9,900.00
Payroll 12£900.00£10,800.00

Draft reporting preview

What payroll may report to HMRC from April 2027

Status: draft 2027/28 RTI specification. The final fields may change.

Vehicle identifier
Registration needed
Make
Confirm manually
CO₂ emissions
108g/km
Calculated price
£40,000.00
Benefit this period
£900.00
Benefit YTD after first payroll
£900.00

How it works

How this tool works

If vehicle lookup is available, Workmax fills in some basic car details. You still need to confirm items such as the list price, accessories, employee payments and the dates the car was available.

The page is automatically non-indexable until a production lookup credential is configured, matching the agreed launch prerequisite.

Status: Illustrative Workmax example

Illustrative company-car example

A fictional vehicle has a £40,000 relevant price, a confirmed 24% percentage and no private-use payment. The example is original Workmax explanatory content, not an HMRC calculation fixture.

£40,000 × 24% = £9,600

Result: £9,600 annual cash equivalent before availability adjustments

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