Car Tax Calculator guide
This Guide provides details about how to use the Car Tax Calculator and the assumptions made when calculating your vehicle’s tax costs.
Selecting your vehicle
On the first screen you select your vehicles for comparison. Firstly choose a pure electric vehicle or plug-in vehicle; the default shows you new cars that are available to buy in the UK now, but you can also select the Used button to find any plug-in car which has been on sale previously. Next select your comparison vehicle, this can be another plug-in vehicle or a petrol / diesel / hybrid car.
Selecting your cost details
On the input screen you are asked whether you would like company car tax rates shown, and whether you drive within the London Congestion Charge Zone regularly. The default settings will just provide information on car tax costs, but by selecting any of the other options as desired, further details can be shown.Your car tax results
Your car tax costs using the two vehicles selected are calculated using the vehicle’s official CO2 emissions and purchase costs. Displayed are the two models selected with details of each model available, and a headline three-year saving figure. The results are displayed up to three ways. All results will show figures under the heading VED, while those who have selected to see company car tax costs and/or London Congestion Charge costs will see results under the headings of BIK and C-Charge respectively. Finally a total will be shown, adding together the three year cost of VED, plus BIK rates and C-Charge costs where selected.
Note that, from 06 April 2020, all official CO2 emissions are generated using the Worldwide Harmonised Light Vehicle Test Procedure (WLTP), which replaces the New European Drive Cycle (NEDC) as the mandatory test protocol. Unlike the NEDC test data, different model trim options (such as a performance pack, wheel size or body upgrades) may result in changes to the official CO2 figure. In these cases, the range of possible WLTP CO2 emissions is shown, together with the range of tax rates payable (where these are emissions-dependent).
Vehicle Excise Duty (VED)
For new cars the Vehicle Excise Duty (VED) includes the First Year Rate, a Standard Rate payable from a vehicle’s second year, and a Premium Rate for cars with a list price over £40,000 which adds an extra charge of £335 a year to the Standard Rate from years two till six, after which it reverts to the Standard Rate thereafter. The VED rates assume all new cars are registered from 01 April 2020 onwards. New diesel cars are charged a supplement if not compliant with RDE2 regulations. The results reflect this supplement where applicable.
For used cars VED includes the Standard/Premium Rate for cars registered between 01 April 2017 and 31 March 2020. Models registered before 01 April 2017 will display just the Standard Rate. All rates will vary based on bands using official NEDC CO2 emissions for cars registered from March 2001, and on engine capacity for cars registered prior to March 2001.
BIK Company Car Tax
For new cars, BIK Company Car Tax is based on your income tax band, vehicle type, the P11D £ value and, for all vehicles registered from 06 April 2020, official WLTP vehicle CO2 emissions. Tax payable is shown for each financial year from 2021 to 2024 together with the total BIK tax for the three-year period.
For used cars, BIK Company Car Tax is based on your income tax band, vehicle type, the P11D £ value and, for all vehicles registered before 06 April 2020, official NEDC vehicle CO2 emissions. Tax payable is shown for each financial year from 2021 to 2024 together with the total BIK tax for the three-year period. In cases where used cars do not have a P11D figure, the BIK Tax Payable is shown as “not available” and the BIK figures for either vehicle are not included in the summary savings figure at the top of the results.
London Congestion Charge
London Congestion Charge (C-Charge) is based on the current daily charge of £15 (for applicable cars and applies 7am – 10pm every day, excluding 25th December) and the frequency of trips into the Congestion Charge Zone. The total charge is shown for a three-year period.
All electric cars (currently defined as vehicles that emit up to 75 g/km CO2, have a minimum electric range of 20 miles, and meet at least Euro 6 emissions standards) are eligible for the Cleaner Vehicle Discount, which provides a 100 per cent discount after a £10 annual registration fee has been paid. It is intended to reward drivers of ultra low emission vehicles that minimise their impact on Central London’s air quality.
Worked examples
Electric: Jaguar I-Pace EV400 HSE 90kWh 400PS Auto| Description | Jaguar I-Pace VED values |
|---|---|
| OTR price (inc. Govt. Plug-in Car Grant) | £74,995 |
| Official WLTP CO2 | 0 g/km |
| VED First Year Rate | £0 |
| VED Premium Rate | £0 |
| Three-year VED costs = (£0 + £0 + £0) = £0 | |
| Description | Jaguar I-Pace BIK values |
|---|---|
| P11D value | £74,940 |
| BIK – 2021/22 | 1% |
| BIK – 2022/23 | 2% |
| BIK – 2023/24 | 2% |
| Three-year BIK costs at 40% tax rate = £300 (£74,940 x 0.01 x 0.4) + £600 (£74,940 x 0.02 x 0.4) + £600 (£74,940 x 0.02 x 0.4) = £1,500 | |
| Description | Jaguar I-Pace C-Charge values |
|---|---|
| Official WLTP CO2 | 0 g/km |
| C-Charge cost (inc. Ultra Low Emission Discount) | £0 |
| Three-year London C-Charge costs at one charge per week = (£0 + £0 + £0) x 52 = £0 | |