Benefit in Kind (BIK)

Benefit in Kind (BIK) tax is a tax that company car drivers pay when they have a car that is paid for by the company for business and personal use.

How to calculate my company car tax (BIK)

Company car tax (BIK) is payable by an employee and is based on the vehicle's P11D value, multiplied by the appropriate BIK rate (determined by the car's CO2 and fuel type) and the employee's income tax rate (basic rate of 20%, higher rate of 40% or additional rate of 45%).

For example a car with a P11d value of £30,000, CO2 emission of 100g/km (24%) and a UK tax payer on 20% would be:
£30,000 x 24% x 20% = £1440 per year
Divide this by 12 to give you your monthly figure of £120 per month

The P11d value of the vehicle is the price of the vehicle including all extras.

The tables below shows the current and future BIK tax bands (also known as company car tax) based on CO2 emissions of your vehicle.

Plug In Electric vehicles (PHEV) have a battery only range and this can differ from vehicle to vehicle.
Providing the car is under 50 g/km you then work out the mileage they run on battery only to determine your tax band.

CO2 emissions
g/km

Electric range
Miles

2023 - 2024
% rates

2024 - 2025
% rates

2025 - 2026
% rates

2026 - 2027
% rates

0
1-50
1-50
1-50
1-50
1-50
51-54
55-59
60-64
65-69
70-74
75-79
80-84
85-89
90-94
95-99
100-104
105-109
110-114
115-119
120-124
125-129
130-134
135-139
140-144
145-149
150-154
155-159
160-164
165-169
170+

> 130
70-129
40-69
30-39
< 30

2
2
5
8
12
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
37
37

3
3
6
9
13
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
37
37
37

4
4
7
10
14
16
17
18
19
20
21
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
37
37
37

Vehicle Excess duty (VED)

Vehicle Road Fund License or Vehicle Excess duty (VED) as its officially know affects all vehicle drivers and is compulsory to have. Depending when your car was registered will depend on what you pay.

Cars registered on or after 1/4/17 will be charged the standard rate as below.

Tax Class

12m

Petrol/ Diesel cars

Alternative fuel

£180

£170

Note: Cars with a list price of over £40,000 at first registration will pay the additional rate as below for 5 years from the start of the second licence

Tax Class	12m
Petrol/ Diesel cars Alternative fuel	£570 £560

First licence rates for cars registered on or after 01/04/22 based on CO2 emissions and fuel type

CO2	Petrol/ Diesel cars to RDE2 standard	All other Diesel cars	Alternative fuels
0 1 - 50 50 - 75 76 - 90 91 - 100 101 - 110 111 - 130 131 - 150 151 - 170 171 - 190 191 - 225 226 - 255 Over 255	£0 £10 £30 £130 £165 £185 £210 £255 £645 £1040 £1565 £2220 £2605	£0 £30 £130 £165 £185 £210 £255 £645 £1040 £1565 £2220 £2605 £2605	£0 £0 £20 £120 £155 £175 £200 £245 £635 £1030 £1555 £2210 £2595

Petrol and diesel cars registered on or after 01/03/01 and before 01/04/17 based on CO2 emissions and fuel type

Band	CO2 emission figures g/km	12 months
A B C D E F G H I J K L M	Up to 100 101 - 110 111 - 120 121 - 130 131 - 140 141 - 150 151 - 165 166 - 175 176 - 185 186 - 200 201 - 225 226 - 255 Over 255	£0 £20 £35 £150 £180 £200 £240 £290 £320 £365 £395 £675 £695

Alternative fuel registered on or after 01/03/01 and before 01/04/17 based on CO2 emissions and fuel type

Band	CO2 emission figures g/km	12 months
A B C D E F G H I J K L M	Up to 100 101 - 110 111 - 120 121 - 130 131 - 140 141 - 150 151 - 165 166 - 175 176 - 185 186 - 200 201 - 225 226 - 255 Over 255	£0 £10 £25 £140 £170 £190 £230 £280 £310 £355 £385 £665 £685

You can check your vehicle tax by looking onto the Government website buy following the link below.

Government website VED costs