PayFit
Payfit: “Payfit is a payroll software for companies with up to 500 employees. Automate your payroll while eliminating spreadsheets and errors.”
01How much tax should I pay on a company car in 2026/27?
“The amount depends on the P11D value, the BiK percentage determined by CO₂ emissions and WLTP-based electric-range bands (for hybrids), and whether you pay at 20% or 40% income tax rate.”
View in the company profile02Are electric company cars tax-free in the UK?
“No. Fully electric company cars are not tax-free; they are charged at 4% BiK in 2026/27 (rising by 1 percentage point per year), so employees still pay tax through PAYE, but usually less than for petrol or diesel vehicles.”
View in the company profile03How does a company car affect your tax code?
“When HMRC receives a P46(Car), it calculates the BiK and issues a revised PAYE tax code that reduces the employee’s tax-free personal allowance; this increases the PAYE collected each month, with no separate company car line on the payslip.”
View in the company profile04Do you pay company car tax on a hybrid car?
“Yes. Both plug-in and non-plug-in hybrid cars trigger company car tax, with the BiK percentage set by WLTP CO₂ and, for plug-ins, the WLTP electric-range band on the certificate of conformity.”
View in the company profile