- Take your car’s P11D value which is made up of the list price (inc VAT) plus any factory fit options plus the delivery charge.
- Multiply that P11D value by the vehicle's company car tax rate from a sliding scale depending on the car’s official CO2 output to establish your Benefit in kind amount (BIK) – please see below for the link to the car fuel and emissions data.
- Multiply that BIK amount by your personal tax rate (20%, 40% or 45% ) to get your company car tax payable.
Here’s a vehicle we have calculated for you.
- Taxable list price of the vehicle incl VAT is £26,550 x 0.21 (CO2 130 band) = £5575.00
- What is your rate of tax (20%, 40%, 45%) let's assume 20%
- £5575.00 x 0.20 = £1,150.10
- £1,115.10 / 12 = £92.93
The Benefit in Kind is £92.93 per month
Please note for LCVs the cost of tax is a set £3150.00 per annum.
Car fuel and emissions data
For further advice and assistance, please speak to your local tax office or access the link below for the HMRC website.
Information partly sourced from www.gov.uk