The 2026/2027 tax year includes a few changes to the rates and relevant amounts, though the national insurance rates remain frozen.
The following forms of national insurance are frozen at 15%:
Class 1A rate on benefits in kind (BiKs) reported on a P11D(b).
Secondary Class 1 national insurance.
Class 1A rate on termination and sporting testimonial payments over £30,000.
Class 1B rate on BiKs reported on a PAYE Settlement agreement (PSA).
The appropriate percentages used to calculate the taxable benefit of a company car continue to increase. Here are the rates for the 2026/2027 tax year, along with the rates for the 2025/2026 tax year:
CO2 emissions (g/km) | Electric range (miles) | 2025/2026 (%) | 2026/2027 (%) | Change |
Electric only | Not applicable | 3 | 4 | ⬆️ |
1 to 50 | More than 130 | 3 | 4 | ⬆️ |
1 to 50 | 70 to 129 | 6 | 7 | ⬆️ |
1 to 50 | 40 to 69 | 9 | 10 | ⬆️ |
1 to 50 | 30 to 39 | 13 | 14 | ⬆️ |
1 to 50 | Less than 30 | 15 | 16 | ⬆️ |
51 to 54 | Not applicable | 16 | 17 | ⬆️ |
55 to 59 | Not applicable | 17 | 18 | ⬆️ |
60 to 64 | Not applicable | 18 | 19 | ⬆️ |
65 to 69 | Not applicable | 19 | 20 | ⬆️ |
70 to 74 | Not applicable | 20 | 21 | ⬆️ |
75 to 79 | Not applicable | 21 | 21 | ➡️ |
80 to 84 | Not applicable | 22 | 22 | ➡️ |
85 to 89 | Not applicable | 23 | 23 | ➡️ |
90 to 94 | Not applicable | 24 | 24 | ➡️ |
95 to 99 | Not applicable | 25 | 25 | ➡️ |
100 to 104 | Not applicable | 26 | 26 | ➡️ |
105 to 109 | Not applicable | 27 | 27 | ➡️ |
110 to 114 | Not applicable | 28 | 28 | ➡️ |
115 to 119 | Not applicable | 29 | 29 | ➡️ |
120 to 124 | Not applicable | 30 | 30 | ➡️ |
125 to 129 | Not applicable | 31 | 31 | ➡️ |
130 to 134 | Not applicable | 32 | 32 | ➡️ |
135 to 139 | Not applicable | 33 | 33 | ➡️ |
140 to 144 | Not applicable | 34 | 34 | ➡️ |
145 to 149 | Not applicable | 35 | 35 | ➡️ |
150 to 154 | Not applicable | 36 | 36 | ➡️ |
155 to 159 | Not applicable | 37 | 37 | ➡️ |
160 and over | Not applicable | 37 | 37 | ➡️ |
The taxable benefit for use of a company van increases to £4,170 per year. The taxable cost of the benefit is divided by the number of employees who use the van. (Up from £4,020 in the 2025/2026 tax year.)
The car fuel benefit charge is £29,200. This is multiplied by the ‘appropriate percentage’, which is based on the fuel type of the car, and CO2 emissions. (Up from £28,200 for the 2025/2026 tax year.)
The van fuel benefit charge is £798. (Up from £769 for the 2025/2026 tax year.)
The official rate of interest for calculating a beneficial loan using the normal averaging calculation method, or for employer-provided accommodation, has not yet been announced for the 2026/2027 tax year.
The advisory fuel rates, used for employees reimbursing personal mileage where fuel is provided by the employer, or reimbursing employees for business travel in their company cars, are updated every three months. Please refer to HMRC’s guidance for the updated mileage rates.