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Company Car Tax
BENEFIT IN KIND (BIK)
When a company car is made available for the private use of an employee, a 'benefit in kind' value is calculated in relation to the car, and the fuel if that is also provided for private use. If your employer provides you with free fuel for private use (which includes driving to and from your place of work), then this is also a taxable benefit and you will be liable for the Fuel Benefit Charge.
Tax is payable on a company car if it is available for private use by an employee, company director or their family or household. In nearly all cases, private use includes journeys between home and work. The tax charge is lower for cheaper cars, cars with lower C02 emissions and cars that can run on alternative fuels. There is no tax charge if the car is powered only by electricity.
Vehicles are also not taxable if:
• they are provided only for business, and
• they are not available for private use, and
• they are not actually used privately.
Taxation is based on a percentage of the total retail value of the car (including options and accessories but excluding first year VED and New Vehicle First Registration Fee): the actual percentage used is dependent on the CO2 emissions of the vehicle, and whether it has a petrol or diesel engine. Arbury Fleet recommends that users seek professional tax advice regarding their particular circumstances.
BIK BANDS
Special rules apply to cars with ultra-low emissions. From 6 April 2010 for five years, a reduced appropriate percentage of 5% applies for company cars with an approved CO2 emissions figure not exceeding 75g/km.
As in previous years, the BIK rates for diesel vehicles are 3% higher than those of their petrol fuelled CO2-equivalents, which takes into account the higher emissions of local air pollutants from diesel cars. Zero emission cars and vans (such as electric vehicles) continue to have their BIK rate zero-rated, which is guaranteed until 2015.
| Percentage of car's price to be taxed |
CO2 emissions in grammes per kilometre |
Percentage of car's price to be taxed |
CO2 emissions in grammes per kilometre | ||
| Petrol | Diesel | 2011 - 12 tax year |
Petrol |
Diesel | 2011 - 12 tax year |
| 10 | 13 | Up to 120 | 10 | 13 | Up to 99 |
| 15 | 18 | 121-129 | 11 | 14 | 100-104 |
| 16 | 19 | 130-134 | 12 | 15 | 105-109 |
| 17 | 20 | 135-139 | 13 | 16 | 110-114 |
| 18 | 21 | 140-144 | 14 | 17 | 115-119 |
| 19 | 22 | 145-149 | 15 | 18 | 120-124 |
| 20 | 23 | 150-154 | 16 | 19 | 125-129 |
| 21 | 24 | 155-159 | 17 | 20 | 130-134 |
| 22 | 25 | 160-164 | 18 | 21 | 135-139 |
| 23 | 26 | 165-169 | 19 | 22 | 140-144 |
| 24 | 27 | 170-174 | 20 | 23 | 145-149 |
| 25 | 28 | 175-179 | 21 | 24 | 150-154 |
| 26 | 29 | 180-184 | 22 | 25 | 155-159 |
| 27 | 30 |
185-189 | 23 | 26 | 160-164 |
| 28 | 31 | 190-194 | 24 | 27 | 165-169 |
| 29 | 32 | 195-199 | 25 | 28 | 170-174 |
| 30 | 33 | 200-204 | 26 | 29 | 175-179 |
| 31 | 34 | 205-209 | 27 | 30 | 180-184 |
| 32 | 35 | 210-214 | 28 | 31 | 185-189 |
| 33 | 35 | 215-219 | 29 | 32 | 190-194 |
| 34 | 35 | 220-224 | 30 | 33 | 195-199 |
| 35 | 35 | 225-229 | 31 | 34 | 200-204 |
| 35 | 35 | 230 and above | 32 | 35 | 205-209 |
| |
33 | 35 | 210-214 | ||
| 34 | 35 | 215-219 | |||
| 35 | 35 | 220 and above | |||
Special rules apply to cars with ultra-low emissions, a reduced appropriate percentage of 5% applies, from 6 April 2010 for five years, for company cars with an approved CO2 emissions figure not exceeding 75g/km.