Find out how much tax you might pay on your company car
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 (BiK) 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 BiK 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.