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Guide to Business / Personal Vehicle Tax & Benefit in Kind

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

Input Vehicle P11D Value Select CO2 Output Input Monthly Car Allowance Select Your Income Tax Bracket

	2020/21	2021/22	2022/23
Current Approx. Yearly BiK	£	£	£
Current Approx. Monthly BiK	£	£	£
Approx. Monthly Net Cash from Opting Out	£	£	£

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

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

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

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	£110	£15
76-90	£110	£130	£100
91-100	£130	£150	£120
101-110	£150	£170	£140
111-130	£170	£210	£160
131-150	£210	£530	£200
151-170	£530	£855	£520
171-190	£855	£1,280	£845
191-225	£1,280	£1,815	£1,270
226-255	£1,815	£2,135	£1,805
256+	£2,135	£2,135	£2,125

Rates for second year tax payments onwards

Fuel Type	Single 12 Month Payment
Petrol or Diesel	£145
Electric	£0
Alternative	£135

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.