Guide to Business / Personal Vehicle Tax & Benefit in Kind

Company Car Tax / Benefit In Kind / Company Car Opt-Out Calculator

• Input your p11D value - vehicle list price combined with VAT, delivery, cost options & registration
• Select your vehicle's CO2 - if relevant, an additional selection box will appear for electric range
• Input your monthly car allowance before tax - how much your employer will give you on top of your wage to opt out of a company car scheme
• Choose your income tax bracket

Company Vehicle Benefit in Kind (BIK) 2020

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 table illustrates rates for cars registered after 6th April 2020

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 2019

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.

As illustrated below, cars with lower emissions pay less.

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

Alternative fuels include hybrids, bioethanol & liquid petroleum gas

Rates for second year tax payments onwards

Cars with a value of over £40,000 (including cost options, such as metallic paint) pay an annual £320 supplement for five years from the second time the vehicle is taxed.