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)

CO2
(g/km)
Electric
range
(miles)
FY 2021-22 FY 2022-23 FY 2023-24
Petrol,
Electric,
RDE2
Diesel
Non-
RDE2
Diesel
Petrol,
Electric,
RDE2
Diesel
Non-
RDE2
Diesel
Petrol,
Electric,
RDE2
Diesel
Non-
RDE2
Diesel
0 1 2 2
1-50 130+ 1 2 2
1-50 70-129 4 5 5
1-50 40-69 7 8 8
1-50 30-39 11 12 12
1-50 <30 13 14 14
51-54 14 15 15
55-59 15 16 16
60-64 16 17 17
65-69 17 18 18
70-74 18 19 19
75-79 19 23 20 24 20 24
80-84 20 24 21 25 21 25
85-89 21 25 22 26 22 26
90-94 22 26 23 27 23 27
95-99 23 27 24 28 24 28
100-104 24 28 25 29 25 29
105-109 25 29 26 30 26 30
110-114 26 30 27 31 27 31
115-119 27 31 28 32 28 32
120-124 28 32 29 33 29 33
125-129 29 33 30 34 30 34
130-134 30 34 31 35 31 35
135-139 31 35 32 36 32 36
140-144 32 36 33 37 33 37
145-149 33 37 34 37 34 37
150-154 34 37 35 37 35 37
155-159 35 37 36 37 36 37
160-164 36 37 37 37 37 37
165-169 37 37 37 37 37 37
170+ 37 37 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.

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