A Range Rover Sport used as a company car costs a higher-rate taxpayer anywhere from about £2,400 a year for the plug-in hybrid to more than £15,000 a year for the V8. Range Rover Sport company car tax is driven almost entirely by two figures on the order form: the P11D value of the car and its official CO2 emissions. Everything else is a smaller adjustment on top.
How the P11D Value Is Set
Every calculation begins with the P11D value. This is the car’s list price including VAT, delivery, and any factory-fitted extras such as upgraded wheels or a premium audio package. It excludes the first registration fee and road tax.1HM Revenue & Customs. How to Work Out the Benefit of a Company Car (480: Chapter 12) The figure is fixed when the car is new and does not fall with depreciation, even if your employer buys the car second-hand.
The Range Rover Sport is an expensive car that tends to get loaded with options. A base Dynamic SE might carry a P11D around £75,000; an Autobiography with optional extras can push past £110,000. Every tick box on the order form permanently raises the number your tax is calculated against for as long as you drive the car.
Which BiK Band Your Range Rover Sport Falls Into
HMRC assigns each company car a Benefit-in-Kind percentage based on CO2 emissions and, for low-emission cars, electric-only range. That percentage decides how much of the P11D value counts as taxable income. For the 2026/27 tax year, the bands run from 4% for zero-emission cars up to a ceiling of 37% at 155 g/km and above.2GOV.UK. Work Out the Appropriate Percentage for Company Car Benefits (480: Appendix 2)
Where the Sport lands depends on the engine:
- The V8 P530, well above 170 g/km, sits at the 37% ceiling.
- The mild-hybrid petrol P400, at 230 to 260 g/km, also hits 37%.
- Every purely petrol or diesel Range Rover Sport falls into the top bracket in practice.
- The P460e and P550e plug-in hybrids, at 15 to 18 g/km with an electric-only range of around 75 to 76 miles, fall into the 1-to-50 g/km band with 70 to 129 miles of electric range, giving a BiK rate of just 7% for 2026/27.3Land Rover. Range Rover Sport Technical Specification2GOV.UK. Work Out the Appropriate Percentage for Company Car Benefits (480: Appendix 2)
The electric-range thresholds create sharp cliffs. A PHEV with 70 or more miles of electric range gets 7% in 2026/27, but 40 to 69 miles jumps to 10%, and under 30 miles hits 16%.2GOV.UK. Work Out the Appropriate Percentage for Company Car Benefits (480: Appendix 2) The current Sport PHEVs clear the 70-mile bar comfortably, but check the specific variant’s official figure on its certificate of conformity rather than trusting marketing materials.
Diesel Range Rover Sports carry an extra 4% surcharge on their BiK percentage unless the engine meets the Real Driving Emissions Step 2 (RDE2) standard.4GOV.UK. Income Tax: Cars Appropriate Percentage – Increasing the Diesel Supplement Most brand-new diesel Sports meet RDE2, but if your employer is offering an older car from the fleet, ask. The combined figure cannot exceed the 37% cap, so on very high-emission diesels the surcharge has no additional effect because they are already at the ceiling.
What You’ll Actually Pay
To find the annual cost, multiply the P11D value by the BiK percentage, then apply your income tax rate. Two examples using 2026/27 rates show how far apart the Range Rover Sport variants sit:
- V8 P530 (P11D around £105,000, 37% BiK): taxable benefit of £38,850. A basic-rate taxpayer at 20% pays £7,770 a year, or about £647 a month. A higher-rate taxpayer at 40% pays £15,540 a year, roughly £1,295 a month.5GOV.UK. Income Tax Rates and Personal Allowances
- PHEV P460e (P11D around £85,000, 7% BiK): taxable benefit of £5,950. A basic-rate taxpayer pays £1,190 a year, about £99 a month. A higher-rate taxpayer pays £2,380 a year, roughly £198 a month.
Additional-rate taxpayers earning over £125,140 pay 45% on the taxable benefit, pushing the V8 cost above £17,400 a year. HMRC collects the tax by adjusting your tax code so the amount is spread across your monthly pay; you see a reduced take-home rather than a lump sum bill.6GOV.UK. Check or Update Your Company Car Tax
The Fuel Benefit Charge
If your employer pays for fuel you use on private journeys, a separate charge applies on top of the car benefit. The fuel benefit is a fixed multiplier (£29,200 for 2026/27) times your car’s BiK percentage. For a V8 at 37%, that adds a taxable fuel benefit of £10,804. A higher-rate taxpayer owes an extra £4,322 a year just for the fuel perk.
The charge is all-or-nothing. If your employer pays for even one litre of private fuel, the full charge applies. Reimburse your employer for every drop used privately and the charge disappears. For a high-emission car like the V8, reimbursing private fuel is almost always the smarter move. The PHEV is less punishing (7% produces a fuel benefit of just £2,044), but reimbursing still saves money for most drivers.
Ways to Reduce the Bill
Beyond choosing the PHEV, a few levers exist.
A capital contribution toward the car’s purchase price is deducted from the P11D value before the BiK percentage is applied. The maximum deduction is £5,000, however much you actually contribute.7HM Revenue & Customs. Employment Income Manual EIM24355 – Car Benefit Calculation Step 3: Capital Contributions On a £105,000 car at 37% BiK, a £5,000 contribution reduces the taxable benefit by £1,850, saving a higher-rate taxpayer £740 a year. Helpful, but not transformative.
Monthly payments you make to your employer for private use of the car also reduce the taxable amount, and these have no cap. If you pay £200 a month toward private use, that £2,400 annually comes off the taxable benefit after the BiK percentage has been applied.8UK Government. Income Tax (Earnings and Pensions) Act 2003 – Section 121
Salary sacrifice is another route. For most Range Rover Sport models, HMRC taxes you on whichever is higher: the salary you gave up or the normal BiK value.9GOV.UK. Salary Sacrifice for Employers Because the V8 and petrol models already carry a huge BiK charge, salary sacrifice rarely helps with those variants. The PHEV is the exception: cars with CO2 emissions of 75 g/km or less are always taxed under the standard BiK rules, so the low 7% rate applies regardless of how much salary you sacrifice. That makes salary sacrifice genuinely attractive for the Sport PHEV.
What’s Changing
The BiK percentage in every band rose by one point between 2025/26 and 2026/27, and further increases are expected in subsequent years. Zero-emission cars moved from 3% to 4%, and the PHEV bands shifted with them.2GOV.UK. Work Out the Appropriate Percentage for Company Car Benefits (480: Appendix 2) For a Range Rover Sport PHEV at 6% in 2025/26, the jump to 7% in 2026/27 adds roughly £850 a year in taxable benefit on an £85,000 car. Still a fraction of what any non-hybrid Sport costs, but the PHEV advantage will narrow over time. When comparing quotes, look at where the bands will sit two or three years into the lease, not just today.
The government has also confirmed that payrolling of benefits in kind becomes mandatory from April 2027, a deadline previously set for April 2026.10GOV.UK. Technical Note: Mandating the Reporting of Benefits in Kind and Expenses Through Payroll Software Once it takes effect, employers will report company car benefits through Real Time Information submissions alongside normal pay data, and P11D forms will largely disappear for most benefits. The tax you owe does not change; the way it is collected does.