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Guide to Business / Personal Vehicle Tax & Benefit in Kind

Benefit in Kind Calculator

If you don't have the time to work out your monthly benefit in kind amount, please use the calculator below. Just input your chosen vehicle's p11d value (list price combined with VAT, delivery, cost options, & registration), select the CO2 & your tax bracket and click calculate.

  2022/23 2023/24 2024/25
Monthly Benefit in Kind Rate:

Company Vehicle Benefit in Kind (BIK)

Benefits in Kind (BIK) are benefits which directors or employees receive from employment which are not included in their salary or wages. Sometimes these are also called "perks" or "fringe benefits". A company car is seen as a major perk by the taxman: and as soon as you use it for a personal reason (including commuting), it is viewed as a taxable payment.

The below rates are frozen until 2024/25

CO2 (g/km) Electric Range (miles 2022-23 (%) 2023-24 (%)
0 N/A 1 1
1-50 >130 2 2
1-50 70-129 5 5
1-50 40-69 8 8
1-50 30-39 12 12
1-50 <30 14 14
51-54   15 15
55-59   16 16
60-64   17 17
65-69   18 18
70-74   19 19
75-79   20 20
80-84   21 21
85-89   22 22
90-94   23 23
95-99   24 24
100-104   25 25
105-109   26 26
110-114   27 27
115-119   28 28
120-124   29 29
125-129   30 30
130-134   31 31
135-139   32 32
140-144   33 33
145-149   34 34
150-154   35 35
155-159   36 36
160-164   37 37
165-169   37 37
170+   37 37

To calculate how much tax you'd have to pay on a company car please use the method below:

  • Get your car's P11D value: list price combined with VAT, delivery, cost options, & registration.
  • Multiply the P11D value by the vehicle's company car tax rate (illustrated in the table above) to get your Benefit in Kind amount.
  • Multiply your Benefit in Kind amount by your personal tax rate to get your company car tax payable.

Vehicle Excise Duty

Vehicle Excise Duty (VED) is an alternative term for Road Fund License (RFL), or Car Tax. This is built into your monthly rentals, so you don't need to worry.

Cars registered on or after 1st April 2017 will be subject to the following:

Alternative fuels include hybrids, bioethanol & liquid petroleum gas

Emissions (g/km of CO2) Petrol & RDE2 Standard Diesel Cars All Other Diesel Cars Alternative Fuel Cars
0 £0 £0 £0
1-50 £10 £25 £0
51-75 £25 £120 £15
76-90 £120 £150 £110
91-100 £150 £170 £140
101-110 £170 £190 £160
111-130 £190 £230 £180
131-150 £230 £585 £220
151-170 £585 £945 £575
171-190 £945 £1,420 £935
191-225 £1,420 £2,015 £1,410
226-255 £2,015 £2,365 £2,005
256+ £2,365 £2,365 £2,355

 

Rates for second year tax payments onwards:

Fuel Type Single 12 Month Payment
Petrol or Diesel £165
Electric £0
Alternative £155

 

Cars with a value of over £40,000 (including cost options, such as metallic paint) pay an annual £335 supplement for five years from the second time the vehicle is taxed.

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