How leasing works

What Is Benefit In Kind?

If your new vehicle is a company car that will made available for private use, a "benefit in kind" value will be calculated on which you will pay tax.

 

How is it calculated?

The full price of the car including optional extras, manufacturers delivery and VAT, known as the P11D value is multiplied by the appropriate % based on the CO2 emissions of the car. Please see the table below for the appropriate percentage (%). You will be charged tax on this amount at the highest rate at which you pay income tax.

Use this handy calculator to work out your Benefit in Kind.


Benefit-in-kind (BIK) Company Car Tax Bands

 

CO2 (g/km)2019-20 (%)CO2 (g/km)2019-20 (%)
0-50 16 125-129 29
51-75 19 130-134 30
76-94 22 135-139 31
95-99 23 140-144 32
100-104 24 145-149 33
105-109 25 150-154 34
110-114 26 155-159 35
115-119 27 160-164 36
120-124 28 165+ 37
Cars registered before 6 April 2020:  
CO2 (g/km)Electric range (miles)2020-21 (%)2021-22 (%)2022-23 (%)
0 >N/A 0 1 2
1-50 >130 2 2 2
1-50 70-129 5 5 5
1-50 40-69 8 8 8
1-50 30-39 12 12 12
1-50 < 30 14 14 14
51-54   15 15 15
55-59   16 16 16
60-64   17 17 17
65-69   18 18 18
70-74   19 19 19
75-79   20 20 20
80-84   21 21 21
85-89   22 22 22
90-94   23 23 23
95-99   24 24 24
100-104   25 25 25
105-109   26 26 26
110-114   27 27 27
115-119   28 28 28
120-124   29 29 29
125-129   30 30 30
130-134   31 31 31
135-139   32 32 32
140-144   33 33 33
145-149   34 34 34
150-154   35 35 35
155-159   36 36 36
160+   37 37 37

* Add 4% for diesels up to a maximum of 37% (unless RDE2 compliant). Diesel plug-in hybrids are classed as alternative fuel vehicles, so the 4% diesel supplement does not apply to these vehicles irrespective of RDE2 compliance

Cars registered from 6 April 2020:  
CO2 (g/km)Electric range (miles)2020-21 (%)2021-22 (%)2022-23 (%)
0 >N/A 0 1 2
1-50 >130 0 1 2
1-50 70-129 3 4 5
1-50 40-69 6 7 8
1-50 30-39 10 11 12
1-50 < 30 12 13 14
51-54   13 14 15
55-59   14 15 16
60-64   15 16 17
65-69   16 17 18
70-74   17 18 19
75-79   18 19 20
80-84   19 20 21
85-89   20 21 22
90-94   21 22 23
95-99   22 23 24
100-104   23 24 25
105-109   24 25 26
110-114   25 26 27
115-119   26 27 28
120-124   27 28 29
125-129   28 29 30
130-134   29 30 31
135-139   30 31 32
140-144   31 32 33
145-149   32 33 34
150-154   33 34 35
155-159   34 35 36
160-164   35 36 37
165-169   36 37 37
170+   37 37 37

* Add 4% for diesels up to a maximum of 37% (unless RDE2 compliant). Diesel plug-in hybrids are classed as alternative fuel vehicles, so the 4% diesel supplement does not apply to these vehicles irrespective of RDE2 compliance


Vans

Since 6 April 2019, the Van Benefit Charge (VBC) rate for drivers of company vans, including 'double-cab' pick-ups, who use their vehicles for private mileage has been set at £3,430, or £4,085 if the employer also provides 'free' fuel.

This translates to annual tax payable on any company van used privately of £686 for a 20% tax payer, or £1,372 for a 40% tax payer. Where fuel is also provided for private use, the tax payable is £817 for a 20% tax payer, or £1,634.20 for a 40% tax payer. Employees using their vans to drive from home to customers, and who are not allowed other private use, do not pay BIK tax.

Benefit in Kind Calculator

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