Company Car Tax Calculator

Company car tax is calculated as a percentage of the car's value which also considers how eco-friendly the car is based on its emissions and fuel type. our income tax band also plays a role in the final amount. This tax is typically deducted from your monthly paycheck. Explore various BIK rates using our company car tax calculator above.

A benefit in kind refers to a non-cash benefit that an employee receives from their employer as part of their remuneration package – i.e. The private use of a company vehicle.

P11D value is the total value of all taxable benefits that an employer provides to their employees during a tax year. This includes items such as company cars, health insurance, and other non-cash benefits. The P11D value is used to calculate the amount of income tax and National Insurance contributions that an employee must pay on these benefits.

In general, if you have a higher-value car with higher CO2 emissions, you will be required to pay more tax. However, if you have a low-emission or electric car, you may be eligible for tax savings or exemptions.

The fuel type of a company car can have a significant impact on the amount of company car tax that an employee is required to pay.

In the UK, the company car tax system is designed to incentivise the use of low-emission or electric cars by offering tax savings or exemptions for these types of vehicles. Therefore, if you have a low-emission or electric car, you may be eligible for lower company car tax rates or exemptions.

In the UK, company car tax rates are based on income tax bands, which means that if you have a higher personal tax rate, you will generally be required to pay a higher percentage of the car's value as company car tax. It's important to note that the amount of company car tax you pay also depends on other factors, such as the car's value, CO2 emissions, and fuel type. Therefore, it's important to use a company car tax calculator and seek advice from a tax professional to accurately determine the amount of company car tax that you are required to pay based on your personal tax rate and other factors.

The tax is calculated as a percentage of the car's value, and the percentage varies based on the car's emissions and fuel type. The employee's personal tax rate is also taken into account when calculating the tax, and the tax is usually deducted from the employee's salary each month. Use our calculator to get an idea of the different BIK rates.

Yes, electric cars generally have cheaper company car tax compared to traditional petrol or diesel cars. In the UK, the company car tax system is designed to encourage the use of low-emission and electric cars by offering tax savings or exemptions for these types of vehicles.