Find out how much tax you might pay on your lease company car with our BiK calculator

Having a company car is viewed as a taxable benefit. If your vehicle is leased by the business you work for, you will be liable for paying company car tax, also known as benefit in kind tax.

Factors like CO2 emissions and fuel type – petrol, diesel, hybrid or electric – will determine your vehicle’s BiK percentage banding.

In addition, the P11D value of your company car will affect the amount you are taxed. This takes the manufacturer’s on-the-road price* including any options fitted and VAT, and excludes first-year vehicle excise duty and the first registration fee.

To calculate your BiK tax you should multiply the P11D value of your vehicle by its benefit in kind percentage and then multiply that figure by your personal tax rate†.

For a fast and easy guide to how much you might pay – use our company car tax calculator below:

 

 

* If your vehicle receives a government plug in grant this should not be subtracted from the on the road price.

† Your tax rate will be at the basic 20% rate if your earnings are under £46,350 or 40% if you earn over this amount. For earnings above £150,000 the personal tax rate is 45%. Note that the benefit of a company car is treated as additional income and as such a proportion of the benefit may be taxed at your next highest tax rate.