IF YOU are choosing your next company car you need to know what company car tax banding it will be in, since this will determine the level of company car tax that you will pay. This is known as benefit-in-kind, often shortened to BIK. Our company car tax tables can help you.
The company car tax table shows the CO2 emission bands on the left hand side columns.
A pure electric propulsion car has zero emissions but it’s not exempt – the tables start at 0g/km CO2 emissions so it’s 9% in 2017/18.
You can then read across to see the benefit in kind tax percentages that will be applied to the P11D value of your company car for each taxation year.
To use the company car tax table you need
- The CO2 emissions of your chosen company car
- The P11D value of your company car. This is the list price of the car including the cost of any options that you have added, as well as accessories over the value of £100 but excluding the first registration fee and vehicle excise duty.
- The type of fuel that your company car runs – because cars that run solely on diesel are subject to a 3% company car tax surcharge. This does not apply to diesel hybrids.
To work out your company car tax
- Multiply the company car tax band percentage rate by your car’s P11D value to give you your benefit in kind
- Then multiply that figure by your marginal rate of tax: 20% or 40%.
- Should the CO2 emissions of your company car fall between CO2 bandings, simply round the number down to work out the company car tax band that applies.
- For example, a diesel company car with CO2 emissions of 98g/km would be subject to a 21% company car tax banding in the 2017/18 tax year.
Our company car tax tables are below.
Company car tax tables
|Taxable percentage of P11D value|
% BIK Rate
% BIK Rate
% BIK Rate
|220 or above||37||37||37||37||37||37|
Changes in company car tax that you should know about
- Zero emission cars, for several years exempt, are now subject to 9% benefit-in-kind tax, rising to 16% in 2019/20.
- Ultra low emission cars have two bands: 0-50g/km (9%, diesels 12%) and 51-75g/km (13%, diesels 16%). These rise to 16% for 0-50g/km and 19% for 51-75g/km cars by 2019/20.
- Diesel hybrids are not subject to the 3% diesel surcharge that applies only to cars that run solely on diesel
- From 2017/18 a four percentage point differential separates the 0-50g/km and 51-75g/km CO2 bands and the 51-75g/km and 76-94g/km CO2 bands, reducing to a three percentage point differential in 2018/19 and 2019/20.
Company car tax bands 2020/21
- Click here for new 2020/21 table favouring ultra low emission vehicles (ULEVs)
What if my company car doesn’t have a CO2 figure?
You need to apply the following company car tax table which is based on engine size
- 0-1400cc: 15% (petrol, gas and conversions); 18% diesel
- 1401-2000cc: 25% (petrol, gas and conversions); 28% diesel
- Over 2000cc: 35% (petrol, gas and conversions); 35% diesel