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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.