Benefit-in-Kind is the tax you pay for the provision of driving a company owned vehicle*. Taxation is based on a percentage of the total retail value of the car (including options and accessories but excluding first year VED and New Vehicle First Registration Fee): the actual percentage used is dependent on the CO2 emissions of the vehicle, and whether it has a petrol or diesel engine.
Example: Vauxhall New Astra ES 1.7CDTi 16v (110PS) ecoFLEX (CO2 emissions 119g/km)
On-the-road
£17,670.00
Higher Rate (40%) tax payer
£938.60
Deduct: Vehicle Excise Duty (first year rate)
£0.00
New vehicle first registration fee
£55.00
Effective list price
£17,615.00
Add: Optional two-coat metallic paint
£435.00
List price for tax purposes (P11D value)
£18,050.00
Car benefit charge: 2010-11 tax years (13%)
£2,346.50
Benefit in kind tax liability (2010-11 tax year)
Basic Rate (20%) tax payer
£469.83
If your employer provides you with free fuel for private use (which includes driving to and from your place of work), then this is also a taxable benefit and you will be liable for the Fuel Benefit Charge. This is calculated in a similar way to the taxable benefit for the car, except that instead of taking a percentage of the P11D value of the car, the percentage is applied to the fuel charge "multiplier" of £18,000 (tax year 2010/11). The BiK Calculator provided will show you the tax due if you select ‘Yes’ to the question ‘Does your employer pay for private use of fuel?’
*Please note this website provides taxation information (including the tax calculator) which is intended as a guide only. Accordingly General Motors UK Limited recommends that the user seeks professional tax advice regarding their particular circumstances, and that this guidance should not be relied on as a substitute for such advice.
Benefit-in-Kind Company Car Taxation Bands
The table below shows the percentage of the car’s price to be taxed based on CO2 emissions in grammes per kilometre.
Percentage of car's price to be taxed
CO2 emissions in grammes per kilometre
35
35
235 and above
230 and above
Petrol
Diesel
2010-11 tax year
2011-12 tax year
10
13
Up to 120
Up to 120
15
18
121-134
121-129
16
19
135-139
130-134
17
20
140-144
135-139
18
21
145-149
140-144
19
22
150-154
145-149
20
23
155-159
150-154
21
24
160-164
155-159
22
25
165-169
160-164
23
26
170-174
165-169
24
27
175-179
170-174
25
28
180-184
175-179
26
29
185-189
180-184
27
30
190-194
185-189
28
31
195-199
190-194
29
32
200-204
195-199
30
33
205-209
200-204
31
34
210-214
205-209
32
35
215-219
210-214
33
35
220-224
215-219
34
35
225-229
220-224
35
35
230-234
225-229
Special rules apply to cars with ultra-low emissions, a reduced appropriate percentage of 5% applies, from 6 April 2010 for five years, for company cars with an approved CO2 emissions figure not exceeding 75g/km.
To calculate your personal liability for Benefit-in-Kind tax for the current tax year, please click on the link below.
