Company Car Calculator
Company car or your own car, buy or lease? See company car tax, tax relief and mileage, line by line. Free and indicative, using GOV.UK data as at September 2026.
Enter the car you're looking at
Its price, whether it's electric, hybrid or petrol, and the miles you drive.
See four ways of having it
The company buys it, the company leases it, or you buy or lease it and the company pays you mileage.
See every cost and tax
Company car tax, National Insurance, tax relief, mileage and running costs, line by line.
Indicative only, not advice. This tool shows how the tax works out on the figures you enter. It does not tell you which car to choose or how to pay for it, and must not be relied upon. Speak to us before making any decision.
The car
Leasing quote
Use the same car and term. Leave as it is if you don't have a quote yet.
Miles and running costs
You and your company
These set your tax rates on company car tax and on dividends.
More settings
Working it out
Indicative only, not advice, and not to be relied upon. See how it is worked out below.
The four ways, side by side
| CompanyAfter tax relief | YouIncl. company car tax | CombinedIn your money |
|---|
Company car tax, year by year
| Tax year | Rate | Taxable value | Your tax | Company NI |
|---|
This applies when the company buys or leases the car and you use it privately. It is the list price times the rate. Company NI is Class 1A at 15%.
Why the figures are different
The workings for each way
Tax rates and rules used
Rates from GOV.UK as at September 2026.
Important: this calculator is indicative only. It is not advice and must not be relied upon, and it does not recommend any car, any way of paying for one, or any lender or lease company. It uses tax rates on GOV.UK as at September 2026 and assumes the figures you enter stay the same each year, that you are a director paid by salary and dividends, that you pay for your own private fuel or charging, and that the company has no other cars in the same capital allowance pool. It does not include the cost of borrowing unless you enter it, or any change in the car's value beyond your estimate. Finance and leasing terms vary: speak to a broker or lease company about those. Abbeygate Accountancy accepts no responsibility for any loss arising from use of this calculator.
About the company car calculator
This free calculator compares four ways of having the same car: the company buys it, the company leases it, or you buy or lease it yourself and the company pays you tax free mileage. It works for electric cars, plug-in hybrids and petrol or diesel cars.
It shows company car tax (benefit in kind) for each year you keep the car, up to 2029/30, the 15% employer National Insurance, corporation tax relief, capital allowances, the 15% lease restriction for cars over 50g/km, VAT on a lease and mileage at 55p a mile.
It includes the HMRC easement for plug-in hybrids registered from 1st January 2025 under the newer Euro 6e-bis test, where the CO2 is treated as 1g/km for company car tax.
Results are indicative only, use September 2026 data and are not to be relied upon. Abbeygate Accountancy does not recommend any car, lender or lease company.
Rates the calculator uses
| Rule | Rate |
|---|---|
| Company car tax, electric cars 2026/27 | 4% |
| Company car tax, electric cars 2027/28 to 2029/30 | 5%, 7%, 9% |
| Plug-in hybrids 1 to 50g/km from April 2028 | 18% |
| Employer National Insurance, Class 1A | 15% |
| First year allowance, new electric cars to 31st March 2027 | 100% |
| Lease rental not allowed, cars over 50g/km | 15% |
| Tax free mileage, first 10,000 business miles | 55p |
| Tax free mileage after 10,000 miles | 25p |
GOV.UK rates as at September 2026, for England and Northern Ireland.
Questions people ask
Is it better to have a company car or use my own car?
It depends on the car and the miles. Electric cars have low company car tax, so they often cost less through a company. Petrol cars have high company car tax, so owning the car yourself and claiming mileage can cost less. The calculator compares all four ways on your own figures.
What is the company car tax rate for an electric car?
For 2026/27 it is 4% of the list price, rising to 5% in 2027/28, 7% in 2028/29 and 9% in 2029/30.
What is the plug-in hybrid easement?
Some plug-in hybrids first registered from 1st January 2025 show over 50g/km under the newer Euro 6e-bis test. For company car tax HMRC treats their CO2 as 1g/km, so the rate depends on electric range. It lasts until the arrangement is changed or renewed, or 5th April 2031 at the latest.
Can a limited company claim the VAT on a leased car?
If the company is VAT registered and the car is available for private use, it can usually reclaim half the VAT on the lease rental, and all the VAT on a maintenance charge shown separately.
Does the 15% lease disallowance depend on private use?
No. It depends only on CO2. For cars over 50g/km, 15% of the lease rental is not allowed for corporation tax even if the car is only used for business. It does not apply to vans, motorbikes or a separate maintenance charge.
How much mileage can my company pay me tax free?
Up to 55p a mile for the first 10,000 business miles in a tax year and 25p a mile after that, from 6th April 2026.
See also all our calculators, or book a free call.
Indicative only, not advice. This calculator uses September 2026 data and is not to be relied upon. Speak to us before making any decision.