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What is Benefit in Kind?

Cars

If your new vehicle is a company car, that will be made available for private use, a "benefit in kind" value will be calculated on which you will pay tax.

How is it calculated?

The full price of the car including optional extras, manufacturers delivery and VAT, known as the P11D value is multiplied by the appropriate % based on the CO2's of the car, (please see table below for appropriate %)

You will be charged tax on this amount at the highest rate at which you pay income tax.

Calculate my tax

If you know the P11D value and CO2 of your car please enter below, also enter the rate at which you pay income tax to discover how much tax you will pay for the benefit of having your company car.


g/km


If you don't know the above click here to build your car, discover the P11D, CO2 and calculate the tax charge.

Fuel Charge

If your employer provides fuel for your private use this is a benefit to you and will incur a tax charge.

This is calculated by multiplying £21,000 (a set amount irrespective of car driven) by the same % derived from the CO2 of your car, see above or table below.

e.g A car with CO2’s of 114 g/km has a tax charge of 14%. . The fuel scale charge is £21,100 x 14% = £2,954, equating to annual fuel tax liability of £590.80 for a 20% tax payer, or £1181.60 for a 40% tax payer.

Vans

If you are given a company van, and are allowed unrestricted private use, you will be charged tax on £3,000 p.a. if you are also allowed fuel for your private mileage tax will be charged on £500.

Unlike cars, journeys in a van between home and work do not count as private use as long as the van is mainly used for work journeys. In this situation no tax charge is made against the employee.

Company Car Tax Table

Taxable percentage of P11D value
Vehicle
CO2
g/km		 2013-14
%BIK Rate		 2014-15
%BIK Rate		 2015-16
%BIK Rate		 2016-17
%BIK Rate
Petrol Diesel Petrol Diesel Petrol Diesel All cars
0 0 0 0 0 5 7 7
1-50 5 5 5 5 5 7 7
51-75 5 5 5 5 9 11 11
76-94 10 13 11 14 13 16 15
95-99 12 15 12 15 14 17 16
100-104 12 15 13 16 15 18 17
105-109 13 16 14 17 16 19 18
110-114 14 17 15 18 17 20 19
115-120 15 18 16 19 18 21 20
121-124 16 19 17 20 19 22 21
125-129 17 20 18 21 20 23 22
130-134 18 21 19 22 21 24 23
135-139 19 22 20 23 22 25 24
140-144 20 23 21 24 23 26 25
145-149 21 24 22 25 24 27 26
150-154 22 25 23 26 25 28 27
155-159 23 26 24 27 26 29 28
160-164 24 27 25 28 27 30 29
165-169 25 28 26 29 28 31 30
170-174 26 29 27 30 29 32 31
175-179 27 30 28 31 30 33 32
180-184 28 31 29 32 31 34 33
185-189 29 32 30 33 32 35 34
190-194 30 33 31 34 33 36 35
195-199 31 34 32 35 34 37 36
200-204 32 35 33 35 35 37 37
205-209 33 35 34 35 36 37 37
210-214 34 35 35 35 37 37 37
215-219 35 35 35 35 37 37 37
220 or above 35 35 35 35 37 37 37

The Chancellor announced in his Budget that first year allowances (FYA) for ultra low emission vehicles (ULVs) will be extended until 31 March 2018.