Motors

Benefit in kind and company car tax

BENEFIT in kind tax rates for company car users are calculated according to a car's carbon dioxide emissions.

The more polluting the car, the higher the tax rate. Tax liability is based on the car's official price, known as the 'P11D', multiplied by the appropriate BIK rate and the user's income tax rate.

For example, a diesel car costing £20,000 with CO2 emissions of 111g/km has a benefit in kind rate of 24 per cent. The car tax bill for someone paying 20 per cent income tax would be: 20,000 x 24% = £4,800 benefit in kind x 20% income tax = £960 annual company car tax, or £80 a month.

Zero emission electric vehicles attract 9 per cent BIK in 2017/18 and 13 per cent in 2018/19.

 

Vehicle CO2  

g/km

2017-18

%BIK Rate

2018-19

%BIK Rate

Petrol

Diesel

Petrol

Diesel

0-50

9

12

13

16

51-75

13

16

16

19

76-94

17

20

19

22

95-99

18

21

20

23

100-104

19

22

21

24

105-109

20

23

22

25

110-114

21

24

23

26

115-119

22

25

24

27

120-124

23

26

25

28

125-129

24

27

26

29

130-134

25

28

27

30

135-139

26

29

28

31

140-144

27

30

29

32

145-149

28

31

30

33

150-154

29

32

31

34

155-159

30

33

32

35

160-164

31

34

33

36

165-169

32

35

34

37

170-174

33

36

35

37

175-179

34

37

36

37

180-184

35

37

37

37

185-189

36

37

37

37

190+

37

37

37

37

 

 

Motors

Today's horoscope

Horoscope


See a different horoscope: