Benefit-in-Kind Rates

Benefit-in-Kind car tax bands explained

Benefit-in-Kind (BiK) is a tax you pay when your company car is available for your private use.

To determine the amount of tax you will pay the P11D value of the car is multiplied by the car’s appropriate percentage, commonly known as its BiK rate. The BiK rate is determined by a number of factors – the car’s CO₂ emissions, its fuel type and, for diesel models, whether it is RDE2-compliant. For car’s with CO₂ emissions between 1 and 50g/km, their zero-emissions capable range is also factored in.

Starting in 2020/21 tax year, two BiK rate tables will run alongside each other. The first is for cars registered before 6 April 2020. It uses the car’s NEDC CO₂ emissions figure. The second table is for cars registered from 6 April 2020; this uses the car’s WLTP CO₂ emissions figure.

From 2023/24 tax year there will be a single rates table that will apply to all cars, irrespective of when they were registered.

Benefit-in-Kind rates for cars registered before 6 April 2020:

The appropriate percentage for models powered solely by diesel are subject to a 4% supplement which must be added to the above rates, to a maximum of 37%. This does not apply to diesel hybrids. Diesel models that meet the RDE2 standard are exempt from the supplement.

Benefit-in-Kind rates for cars registered on or after 6 April 2020:

The appropriate percentage for models powered solely by diesel are subject to a 4% supplement which must be added to the above rates, to a maximum of 37%. This does not apply to diesel hybrids. Diesel models that meet the RDE2 standard are exempt from the supplement.

Spring Budget 2020 confirmed that the 2022/23 rates will also apply to 2023/24 and 2024/25 tax years.