Company Car Tax Rates / Benefit In Kind (BIK) Tax Bands

The following table details the Benefit In Kind tax bands (also known as company car tax) based on a car’s CO2 emissions through to the end of the 2019 financial year.

fleet front

To use this table you need:

  • Your P11D value (the list price of your car)
  • Know the CO2 emissions of your car
  • Your income tax rate (Basic Rate: 20%, Higher Rate: 40%)

Benefit in Kind Rates:

The table below shows BIK tax bands based on vehicle CO2 emissions. BIK bands have currently been set until 2019/20.

Diesel company cars incur an additional 3% benefit-in-kind tax supplement up to a maximum of 37%. The government has stated this will remain in place until April 2021.

% of P11D

2015/16

2016/17

2017/18

2018/19

2019/20

Price

CO2 (g/km)

CO2 (g/km)

CO2 (g/km)

CO2 (g/km)

CO2 (g/km)

      

0

N/A

N/A

N/A

N/A

N/A

5

0-50

N/A

N/A

N/A

N/A

7

N/A

0-50

N/A

N/A

N/A

9

51-75

N/A

0-50

N/A

N/A

10

N/A

N/A

N/A

N/A

N/A

11

N/A

51-75

N/A

N/A

N/A

12

N/A

N/A

N/A

N/A

N/A

13

76-94

N/A

51-75

0-50

N/A

14

95-99

N/A

N/A

N/A

N/A

15

100-104

76-94

N/A

N/A

N/A

16

105-109

95-99

N/A

51-75

0-50

17

110-114

100-104

76-94

N/A

N/A

18

115-119

105-109

95-99

N/A

N/A

19

120-124

110-114

100-104

76-94

51-75

20

125-129

115-119

105-109

95-99

N/A

21

130-134

120-124

110-114

100-104

N/A

22

135-139

125-129

115-119

105-109

76-94

23

140-144

130-134

120-124

110-114

95-99

24

145-149

135-139

125-129

115-119

100-104

25

150-154

140-144

130-134

120-124

105-109

26

155-159

145-149

135-139

125-129

110-114

27

160-164

150-154

140-144

130-134

115-119

28

165-169

155-159

145-149

135-139

120-124

29

170-174

160-164

150-154

140-144

125-129

30

175-179

165-169

155-159

145-149

130-134

31

180-184

170-174

160-164

150-154

135-139

32

185-189

175-179

165-169

155-159

140-144

33

190-194

180-184

170-174

160-164

145-149

34

195-199

185-189

175-179

165-169

150-154

35

200-204

190-194

180-184

170-174

155-159

36

205-209

195-199

185-189

175-179

160-164

37

210+

200+

190+

180+

165+

Example One (tax year 17/18):

A BMW 3 Series 2.0 diesel car is valued at £27,985 and emits 109g/km. The driver is on a 24 month operating cycle at 40,000 miles and pays the higher rate income tax.

  • P11D value = £27,985
  • BIK percentage charge = 23%
  • Benefit In Kind = £6,437
  • Income Tax = 40%
  • Tax payable at 40% = £2,575

This is the amount the employee will pay a year for driving the car.

Example Two (tax year 17/18):

A Hyundai Ioniq 1.6 petrol hybrid car is valued at £22,240 and emits 79g/km. The driver is on a 24 month operating cycle at 40,000 miles and pays the basic rate of income tax.

  • P11D value = £22,240
  • BIK percentage charge = 17%
  • Benefit In Kind = £3,781
  • Income Tax = 20%
  • Tax payable at 20% = £756

This is the amount the employee will pay a year for driving the car.

 

Provisional government plans will see the diesel supplement scrapped in 2020/21. It has also been announced that there will be 15 new tax bands from 2020/21. These include:

Car (g/km of CO2)

Percentage from April 2020

Percentage 2019/2020

0

2%

16%

1 – 50

  
  • Car with electric range of 130 miles or more

2%

16%

  • Car with electric range of 70-129 miles

5%

16%

  • Car with electric range of 40-69 miles

8%

16%

  • Car with electric range of 30-39 miles

12%

16%

  • Car with electric range of less than 30 miles

14%

16%

51 - 54

15%

19%

55 - 59

16%

19%

60 - 64

17%

19%

65 - 69

18%

19%

70 - 74

19%

19% (up to 75g/km)

75 - 79

20%

22%

80 - 84

21%

22%

85 - 89

22%

22%

90 - 94

23%

22%