What Is Benefit In Kind?
If your new vehicle is a company car that will 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 below for the appropriate percentage (%). You will be charged tax on this amount at the highest rate at which you pay income tax.
Use this handy calculator to work out your Benefit in Kind.
Benefit-in-kind (BIK) Company Car Tax Bands
| CO2 (g/km) | 2019-20 (%) | CO2 (g/km) | 2019-20 (%) |
|---|---|---|---|
| 0-50 | 16 | 125-129 | 29 |
| 51-75 | 19 | 130-134 | 30 |
| 76-94 | 22 | 135-139 | 31 |
| 95-99 | 23 | 140-144 | 32 |
| 100-104 | 24 | 145-149 | 33 |
| 105-109 | 25 | 150-154 | 34 |
| 110-114 | 26 | 155-159 | 35 |
| 115-119 | 27 | 160-164 | 36 |
| 120-124 | 28 | 165+ | 37 |
| Cars registered before 6 April 2020: | ||||
|---|---|---|---|---|
| CO2 (g/km) | Electric range (miles) | 2020-21 (%) | 2021-22 (%) | 2022-23 (%) |
| 0 | >N/A | 0 | 1 | 2 |
| 1-50 | >130 | 2 | 2 | 2 |
| 1-50 | 70-129 | 5 | 5 | 5 |
| 1-50 | 40-69 | 8 | 8 | 8 |
| 1-50 | 30-39 | 12 | 12 | 12 |
| 1-50 | < 30 | 14 | 14 | 14 |
| 51-54 | 15 | 15 | 15 | |
| 55-59 | 16 | 16 | 16 | |
| 60-64 | 17 | 17 | 17 | |
| 65-69 | 18 | 18 | 18 | |
| 70-74 | 19 | 19 | 19 | |
| 75-79 | 20 | 20 | 20 | |
| 80-84 | 21 | 21 | 21 | |
| 85-89 | 22 | 22 | 22 | |
| 90-94 | 23 | 23 | 23 | |
| 95-99 | 24 | 24 | 24 | |
| 100-104 | 25 | 25 | 25 | |
| 105-109 | 26 | 26 | 26 | |
| 110-114 | 27 | 27 | 27 | |
| 115-119 | 28 | 28 | 28 | |
| 120-124 | 29 | 29 | 29 | |
| 125-129 | 30 | 30 | 30 | |
| 130-134 | 31 | 31 | 31 | |
| 135-139 | 32 | 32 | 32 | |
| 140-144 | 33 | 33 | 33 | |
| 145-149 | 34 | 34 | 34 | |
| 150-154 | 35 | 35 | 35 | |
| 155-159 | 36 | 36 | 36 | |
| 160+ | 37 | 37 | 37 | |
* Add 4% for diesels up to a maximum of 37% (unless RDE2 compliant). Diesel plug-in hybrids are classed as alternative fuel vehicles, so the 4% diesel supplement does not apply to these vehicles irrespective of RDE2 compliance
| Cars registered from 6 April 2020: | ||||
|---|---|---|---|---|
| CO2 (g/km) | Electric range (miles) | 2020-21 (%) | 2021-22 (%) | 2022-23 (%) |
| 0 | >N/A | 0 | 1 | 2 |
| 1-50 | >130 | 0 | 1 | 2 |
| 1-50 | 70-129 | 3 | 4 | 5 |
| 1-50 | 40-69 | 6 | 7 | 8 |
| 1-50 | 30-39 | 10 | 11 | 12 |
| 1-50 | < 30 | 12 | 13 | 14 |
| 51-54 | 13 | 14 | 15 | |
| 55-59 | 14 | 15 | 16 | |
| 60-64 | 15 | 16 | 17 | |
| 65-69 | 16 | 17 | 18 | |
| 70-74 | 17 | 18 | 19 | |
| 75-79 | 18 | 19 | 20 | |
| 80-84 | 19 | 20 | 21 | |
| 85-89 | 20 | 21 | 22 | |
| 90-94 | 21 | 22 | 23 | |
| 95-99 | 22 | 23 | 24 | |
| 100-104 | 23 | 24 | 25 | |
| 105-109 | 24 | 25 | 26 | |
| 110-114 | 25 | 26 | 27 | |
| 115-119 | 26 | 27 | 28 | |
| 120-124 | 27 | 28 | 29 | |
| 125-129 | 28 | 29 | 30 | |
| 130-134 | 29 | 30 | 31 | |
| 135-139 | 30 | 31 | 32 | |
| 140-144 | 31 | 32 | 33 | |
| 145-149 | 32 | 33 | 34 | |
| 150-154 | 33 | 34 | 35 | |
| 155-159 | 34 | 35 | 36 | |
| 160-164 | 35 | 36 | 37 | |
| 165-169 | 36 | 37 | 37 | |
| 170+ | 37 | 37 | 37 | |
* Add 4% for diesels up to a maximum of 37% (unless RDE2 compliant). Diesel plug-in hybrids are classed as alternative fuel vehicles, so the 4% diesel supplement does not apply to these vehicles irrespective of RDE2 compliance
Vans
Since 6 April 2019, the Van Benefit Charge (VBC) rate for drivers of company vans, including 'double-cab' pick-ups, who use their vehicles for private mileage has been set at £3,430, or £4,085 if the employer also provides 'free' fuel.
This translates to annual tax payable on any company van used privately of £686 for a 20% tax payer, or £1,372 for a 40% tax payer. Where fuel is also provided for private use, the tax payable is £817 for a 20% tax payer, or £1,634.20 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.
