How is a company car taxed?
For a company car, you pay BIK or Benefit in Kind tax. Like VED (Vehicle Excise Duty) tax that you would pay for a private car, the rate of tax is based on the vehicle’s CO2 emissions. However, depending on how high or low the g/km rate, the rate of BIK tax will be determined as a different percentage of the car’s overall value. The rate for a more economic car will be a lower percentage of the official P11D value, while the rate for a less economic car will be higher.
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Frequently Asked Questions about Short Term Car Leasing:
- How does car leasing work?
- How do I lease a car?
- How do I qualify for business car leasing?
- How do I lease a car through my business?
- How much to lease a car?
- Can I lease a car through my limited company?
- Is it better to buy or lease a car?
- Is insurance included in a car lease?
- What is the cheapest car to lease?
- What is Business Contract Hire?
- What are the benefits of Business Contract Hire?
- How is a company car taxed?
- What company cars should I choose for my company?
- How much will maintenance cost?
- What are car emissions?
- What is my car’s P11D value? Is it different from its On The Road (OTR) price?
- What does mpg or m/g mean?
- What does g/km mean?
- How do I calculate my BIK tax?