RUNNING COSTS
If you’re looking for the most cost-effective company car, don’t forget the role that fuel economy should play in your decision.
A company car driver will often focus only on the cost of benefit-in-kind taxation. However, this might lead to a higher overall cost when private fuel costs are taken into account.
The below example compares a petrol and a diesel model with the same P11D value.
Although the petrol car offers lower benefit-in-kind taxation, when we consider the cost of private mileage, diesel is the lower cost option.
| Petrol | Diesel | ||||||||||
| P11D | £25,000 | £25,000 | |||||||||
| CO2 (g/km) | 115 | 103 | |||||||||
| BiK 2019/20 tax year | 27% | 28% | |||||||||
| BiK 2020/21 tax year | 28% | 29% | |||||||||
| BiK 2021/22 tax year | 28% | 29% | |||||||||
| Total BiK tax (20% taxpayer) | £4,150 | £4,300 | |||||||||
| MPG (Combined) | 44.5 | 53.3 | |||||||||
| Annual private mileage | 7,500 | 7,500 | |||||||||
| Fuel price / litre (p) | 125.9 | 133.9 | |||||||||
| Total fuel cost | £2,894 | £2,569 | |||||||||
| Total cost | £7,044 | £6,869 |
Calculate BIK and the amount of tax payable on SEAT business vehicles.
