Tax
Company car tax on an EV: the 2% BIK rate
Zero-emission company cars are taxed at 2% of P11D for 2025/26. That is why salary sacrifice exists.
6 minute read · Updated 2026-08-14
Rent an EV
Tax
Sourced from GOV.UK, HMRC or DVLA — not a forum screenshot.
How BIK is calculated
HMRC takes the P11D value of the car, multiplies by the appropriate percentage, then taxes that benefit at your income tax rate.
For a £35,000 zero-emission car at 2%, the annual benefit is £700. A 40% taxpayer pays £280 a year in BIK. That is the number people forget when they compare a personal PCP.
Questions
Will 2% last forever?
No. Rates are set in tax tables and have already been scheduled to rise in later years. Use the year you will actually drive the car.