Fisk concluded: “Company car drivers are typically the first-in-line to take action and react to changes in legislation, as well as adopting new models and technology from manufacturers, especially when it saves them and their company money.

“The results from our survey help us to carefully monitor changing driver demands and seeing how the influence of BIK has more than doubled in the last year only supports our advice to fleets that they must use a total cost of ownership programme to balance cost, flexibility and choice to identify the optimum fleet policy.”

What is BIK and how does it affect me?

How does BIK work?

Well, a company car attracts a benefit-in-kind (BIK) liability which translates into a company car tax payment.  The benefit in kind is determined by two factors: the cost of the car (its P11d value) and the level of the car’s CO2 emissions (expressed as g/km) based on a percentage scale. The BIK is worked out by multiplying the P11d value of the car by the percentage derived from the emissions level. You then pay company car tax on the BIK according to your income tax rate.

The lower the car’s P11d price and the lower the CO2 banding on the HMRC emissions table (see our Company Car Tax table), the lower the BIK, and the less company car tax you’ll have to pay.

For more information read our essential guide on How to understand company car tax.

Fancy paying less in BIK?

 Click here for our top five low emission company cars.