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Guide to Business / Personal Vehicle Tax & Benefit in Kind

uk carline business and personal car tax guide

Company Car Tax / Benefit In Kind Calculator

Input the p11D value of your car (list price combined with VAT, delivery, cost options, & registration) in the field marked with a £ below, fill in the rest of the form, and your approximate Yearly and Monthly rates will be printed in the table at the bottom.

Note: RDE2-compliant diesel vehicles are exempt from the 4% additional rate, so this is not included in the calculation.

2019/20 2020/21 2021/22 2022/23
Approx. Yearly Rate £ £ £ £
Approx. Monthly Rate £ £ £ £

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 before 6th 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
50-54   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

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 2018 will be subject to the following:

Emissions (g/km of CO2) Standard Rate First Year Rate First Year Diesel Rate
0 £0 £0 £0
1-50 £140 £10 £25
51-75 £140 £25 £105
76-90 £140 £105 £125
91-100 £140 £125 £145
101-110 £140 £145 £165
111-130 £140 £165 £205
131-150 £140 £205 £515
151-170 £140 £515 £830
171-190 £140 £830 £1,240
191-225 £140 £1,240 £1,760
226-255 £140 £1,760 £2,070
Over 255 £140 £2,070 £2,070

Cars with a value of over £40,000 (including cost options, such as metallic paint) pay an annual £310 supplement for five years

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