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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