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. 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 on the next page.