How do I calculate my BIK tax?

To calculate your BIK tax, you will need to multiply your vehicle’s BiK band percentage by its P11d value. These tax rates are based upon how much carbon dioxide (CO2) your car emits per gram every kilometre (g/KM) and are therefore different for each vehicle.

BiK tax rate x P11d value = BiK Value

The final BiK tax is then adjusted to suit your annual salary, but only slightly. To do this, multiply your figure by your tax rate at 20, 40 or 45%.

BiK Value x Tax Banding = BiK Tax

(BiK) Benefit in Kind rates for cars registered before and after April 2020

Using new NEDC figures, the table below outlines the BiK rates for cars registered before and after April 2020.

Vehicle CO2 emissions BiK rate
(Electric, Petrol, RDE2 Diesel)
Electric Range 2019-20 2020-21 2021-22 2022-23
0g/km 16% 0% 1% 2%
1-50 g/km Over 130 miles 16% 2% 2% 2%
1-50 g/km 70-129 miles 16% 5% 5% 5%
1-50 g/km 40-69 miles 16% 8% 8% 8%
1-50 g/km 30-39 miles 16% 12% 12% 12%
1-50 g/km Under 30 miles 16% 14% 14% 14%
51-54 g/km 19% 15% 15% 15%
55-59 g/km 19% 16% 16% 16%
60-64 g/km 19% 17% 17% 17%
65-69 g/km 19% 18% 18% 18%
70-74 g/km 19% 19% 19% 19%
75 g/km 19% 20% 20% 20%
76-79 g/km 22% 20% 20% 20%
80-84 g/km 22% 21% 21% 21%
85-89 g/km 22% 22% 22% 22%
90-94 g/km 22% 23% 23% 23%
95-99 g/km 23% 24% 24% 24%
100-104 g/km 24% 25% 25% 25%
105-109 g/km 25% 26% 26% 26%
110-114 g/km 26% 27% 27% 27%
115-119 g/km 27% 28% 28% 28%
120-124 g/km 28% 29% 29% 29%
125-129 g/km 29% 30% 30% 30%
130-134 g/km 30% 31% 31% 31%
135-139 g/km 31% 32% 32% 32%
140-144 g/km 32% 33% 33% 33%
145-149 g/km 33% 34% 34% 34%
150-154 g/km 34% 35% 35% 35%
155-159 g/km 35% 36% 36% 36%
160-164 g/km 36% 37% 37% 37%
>165 37% 37% 37% 37%

What is Company Car or Benefit in Kind Tax?

Whenever a vehicle is provided by the company to an employee, that is available for personal use, the employee must pay tax on the effective benefit that they receive from this.

To work out how much benefit they receive, the Treasury calculates this based on the car’s ‘P11d value’ compared to t receiving the same or similar amount in pre-income tax pay.

How is the P11d value calculated?  

The P11d value of a car is made up from;

  • Vehicle list price
  • Any optional or non-standard extras
  • Delivery fees
  • Value Added Tax (VAT) at 20%

Can Company Car or Benefit in Kind Tax rates vary?

The BiK bandings for each vehicle changes every tax year and is often set to reward more ‘efficient’ models. This rule is in place to encourage both employers and company car drivers to choose ULEZ vehicles with lower emissions over conventional options.

Know what you're looking for?

Complete our online enquiry form and receive your personalised quote within the hour.

Quick Quote

Call Our Team Now on 0800 311 8290