How leasing works

What Is Benefit In Kind?

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 emissions of the car. Please see the table above for the appropriate %.

Cars

 		  

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

Refer to this table to work out your Benefit in Kind.

Use this handy calculator to work out your Benefit in Kind.

Fuel Charge

The Government fuel scale charge for calculating the tax due on employer-provided 'free' fuel for private use in a company car rises to £23,400 from April 6th 2018.

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

This is calculated by multiplying £23,400 (a set amount irrespective of car driven) by the same % derived from the CO2 of your car, see above or table below. For example, a petrol car with CO2 emissions of 99 g/km has a tax charge of 20%. The fuel scale charge is £23,400 x 20% = £4,680, equating to annual fuel tax liability of £936 for a 20% tax payer, or £1,872 for a 40% tax payer.

Vans

Since April 2018, the Van Benefit Charge (VBC) rate for drivers of company vans, including 'double-cab' pick-ups, who use their vehicles for private mileage is set at £3,350, or £3,983 if the employer also provides 'free' fuel.

This translates to annual tax payable on any company van used privately of £670 for a 20% tax payer, or £1,340 for a 40% tax payer. Where fuel is also provided for private use, the tax payable is £796.60 for a 20% tax payer, or £1,593.20 for a 40% tax payer. Employees using their vans to drive from home to customers, and who are not allowed other private use, do not pay BIK tax.

Advisory Fuel Rates from 1 December 2018

You can use the previous rates for up to one month from the date the new rates apply.

Engine size

Petrol - amount per mile

LPG - amount per mile

Engine size

Diesel -  Amount per mile

1400cc or less

12 pence

8 pence

1600cc or less

10 pence

1401cc to 2000cc

15 pence

12 pence

1601cc to 2000cc

12 pence

Over 2000cc

22 pence

15 pence

Over 2000cc

14 pence


Hybrid cars are treated as either petrol or diesel cars for this purpose.

Hybrid powered company car mileage rates

  • Drivers of petrol/electric hybrid company cars should use the petrol rates.
  • Drivers of diesel/electric hybrid cars should use the diesel rates.

These rates are only applicable to employees using a company car.

Advisory electricity company car mileage rate for fully electric cars is 4p, this is also effective from 1 December 2018

Benefit in Kind table

 2018/192019/20
CO2 emissions (g/km)Petrol & Hybrids %Diesel %Petrol & Hybrids %Diesel %
0 to 5013%17%16%20%
51 to 7516%20%19%23%
76 to 9419%23%22%26%
95 to 9920%24%23%27%
100 to 10421%25%24%28%
105 to 10922%26%25%29%
110 to 11423%27%26%30%
115 to 11924%28%27%31%
120 to 12425%29%28%32%
125 to 12926%30%29%33%
130 to 13427%31%30%34%
135 to 13928%32%31%35%
140 to 14429%33%32%36%
145 to 14930%34%33%37%
150 to 15431%35%34%37%
155 to 15932%36%35%37%
160 to 16433%37%36%37%
165 to 16934%37%37%37%
170 to 17435%37%37%37%
175 to 17936%37%37%37%
180 to 18437%37%37%37%
185 to 18937%37%37%37%
190 to 19437%37%37%37%
195 to 19937%37%37%37%
200 to 20437%37%37%37%
205 to 20937%37%37%37%
210 to 21437%37%37%37%
215 to 21937%37%37%37%
220 to 22437%37%37%37%
225 to 22937%37%37%37%
230 to -37%37%37%37%
2020/21
CO2 emissions (g/km)Electric MilesPetrol & Hybrids %Diesel %
0 2%6%
1 to 50>1302%6%
1 to 5070-1295%9%
1 to 5040-698%12%
1 to 5030-3912%16%
1 to 50<3014%18%
51 to 54 15%19%
55 to 59 16%20%
60 to 64 17%21%
65 to 69 18%22%
70 to 74 19%23%
75 to 79 20%24%
80 to 84 21%25%
85 to 89 22%26%
90 to 94 23%27%
95 to 99 24%28%
100 to 104 25%29%
105 to 109 26%30%
110 to 114 27%31%
115 to 119 28%32%
120 to 124 29%33%
125 to 129 30%34%
130 to 134 31%35%
135 to 139 32%36%
140 to 144 33%37%
145 to 149 34%37%
150 to 154 35%37%
155 to 159 36%37%
160 to 164 37%37%
165 to 169 37%37%
170 to 174 37%37%
175 to 179 37%37%
180 to 184 37%37%
185 to 189 37%37%
190+ 37%37%

Benefit in Kind Calculator

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