If you are working in a job role that entitles you to a company car as a `benefit-in-kind`,  you’ll want to know how much your company car tax will amount to. Generally, company cars that are low or zero-emissions – such as electric cars and hybrids – have some of the lowest company car tax rates. In this article, we detail how company car tax is calculated.

The company car tax calculator

Company car tax is based on two figures:

  1. The car’s P11D value: list price + VAT, and delivery charges. Remember, your vehicle’s P11D value is not the same as the vehicle road price
  2. The car’s BiK rate: fuel type of F & D for diesel cars and A for all other cars – and your income at 20%, 40%, or 45%

Once these two figures are determined, the P11D value is then multiplied by the BiK rate.

To find out your company car’s P11D value, you can ask your employer as they are responsible for filling out the P11D form.

To find out your company car’s fuel type, simply search for the model on the manufacturer’s website. Or, you can search the government’s car fuel and CO2 emissions data here.

Next, you’ll want to work out your company car tax rate. The easiest way to work out your tax, otherwise known as `benefit-in-kind (BiK) tax`,  is by using HMRC’s company car tax calculator.

If you need further help calculating your company car tax or you’d private advice, you can contact one of our chartered accountants here How are company car taxes filed?

Employers are responsible for letting HMRC know if employees are using company cars – this is done by submitting a P46 car form via PAYE Online, payroll software, or by post.

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