2025/26 Tax Year
Company Car Tax on £20,000
On a £20,000 company car, BIK tax ranges from £240/year (EV) to £2,400/year (petrol) for a 40% taxpayer.
Annual BIK Tax on £20,000 Car
Electric (3%)
£240
£20.00/mo (40%)
£10.00/mo (20%)
Hybrid (8%)
£640
£53.33/mo (40%)
£26.67/mo (20%)
Petrol (30%)
£2,400
£200.00/mo (40%)
£100.00/mo (20%)
💰 Switch to EV and Save £2,160/year
That's £180.00/month more in your pocket (40% taxpayer)
Company Car Details
Calculate Benefit in Kind tax for 2025/26
£
£
Your BIK Tax
3% BIK rate • 20% tax bracket
£120
Annual Tax on Company Car
Monthly Tax
£10.00
BIK Value
£600
Car List Price£20,000
BIK Rate3%
Taxable Benefit£600
Your Tax Rate20%
Great Choice!
Electric vehicles have the lowest BIK rate at just 3%. A petrol car of the same value could cost over £1,200/year more in tax.
BIK Tax Breakdown for £20,000 Car
| Vehicle Type | BIK Rate | BIK Value | Tax (40%) |
|---|---|---|---|
| Electric (0g/km) | 3% | £600 | £240 |
| Hybrid (70-129mi range) | 8% | £1,600 | £640 |
| Petrol (125-129g/km) | 30% | £6,000 | £2,400 |
| Diesel (155g/km+) | 37% | £7,400 | £2,960 |
What is P11D Value?
The P11D value is the car's list price including VAT and options, minus the first year registration fee. This £20,000 P11D value is used to calculate your Benefit in Kind taxable amount by multiplying it by the BIK percentage rate for the vehicle type.
Salary Sacrifice for EVs
With a salary sacrifice scheme, you could get a £20,000 EV for even less than the BIK tax alone. You "sacrifice" gross salary to lease the car, saving Income Tax and National Insurance. Use our salary sacrifice calculator to see the full benefit.