To figure out how much tax you’ll need to pay, you’ll first need to find out:
- Your car’s P11D value - or, the list price of your vehicle. Don’t worry; your employer should have this value handy for you among their records. If you’re a company director, then your dealership can provide you with this value.
- CO2 emissions of the car - that is, the official CO2 emissions rate of your vehicle. You’ll be able to find this out by going to the HMRC website where you can fill in the details of your car to obtain the correct figure.
- Car tax band - Once you know the CO2 emissions of your vehicle, you’ll be able to see where your vehicle falls among the company car tax bands.
Here's a table to help you figure out what BIK rate you are eligible for on cars registered from 6th April 2020.
Calculating your company car tax
Now that you know which car tax band your vehicle falls into, you can find out the taxable value of your car by multiplying the P11D value of your car by the CO2 tax rate from the table. Once you’ve got this figure, you then multiply it by your income tax rate (20%, 40% or 50%) to get the amount of BIK tax you need to pay. While you’re likely to find a company car tax calculator with a simple online search, it all really comes down to this simple equation:
P11D x CO2 tax rate x Your income tax rate = BIK tax to pay
Going forward with the new car tax
Now you know what company car tax changes are, but if you would like to find out the leasing costs of a particular vehicle please call Stacey Howlett for assistance.
Share this page
20th of February 2020