Oh No, Javascript is Disabled!

It looks like you have disabled Javascript in your web browser. In order to take advantage of the full functionality of this website Javascript must be enabled. Please change you browser settings.

View our latest reviews

0121 260 2888 Call Me Back

One Point Of Contact

Personal Service

Consultative Approach

Professional & Friendly

Company Car Tax Explained

You will pay tax if you or your family use a company car privately which includes commuting. The amount you will pay depends upon the value of the car including optional extras (P11d value), Its Co2 emissions, the type of fuel used and whether you are a basic, higher rate or additional rate tax payer.

Use the search below, scroll down to the FAQ's or call us on 0121 260 2888.

Company Car Tax Calculator

Choose Your Company Car

Searching For Results

Sort by:

One moment please, we're finding you the best deals.

No Deals Found

Please alter your search filters by clicking here or contact us as we may be able to find a deal to match your requirements.

Call us on 0121 260 2888

Company Car Tax FAQs

Here are some common questions about company car tax and bik (benefit in kind).

What is a P11d value?

The P11d value for a car is based on its list price including VAT, any factory fitted options and any delivery charges. It does not include the first registration fee or the annual vehicle road tax (VED). Look at our Company car Tax Calculator to work out the BIK for your Company Car Tax.

How are Co2 emissions calculated?

A new vehicle`s Co2 emission is calculated using the Worldwide Harmonised Light Vehicle Test Procedure (WLTP), this replaced the New European Driving Cycle (NEDC) which had been used since 1992. WLTP, while still lab-based, measures a car's fuel consumption over much more realistic day to day driving conditions so should provide more accurate fuel consumption figures than the NEDC test. More information is available here.

What impact does fuel type have on company car tax?

Company car drivers with a pure electric vehicle will pay very little BIK tax. The same tax rate also applies to vehicles with a Co2 figure between one and 50g/km of Co2, which are capable of more than 130 miles using battery power alone on a single charge. Comparatively, a petrol or diesel vehicle can be taxed as high as 37%. All manufacturers are striving to reduce their vehicle Co2 emissions which will make them more attractive as a company car and meet Government emission targets. To calculate the taxable value for a car, multiply its P11d value by its Co2 tax rate. Then multiply this figure by your income tax rate (20%,40%,45%) to calculate the BIK tax you will be liable for. We have simplified this for you, use our BIK Tax Calculator by clicking the link above titled Company Car Tax Calculator. Select the Choose Your Company Car button, find the car you want and simply search. We have made the calculations for you. More information on Company car tax BIK tax percentages for vehicles registered after 6th April 2020 please visit the government website.

How does my tax rate affect my company car tax?

Your tax rate will determine the amount of tax you will pay, an increase in Benefit in Kind (BIK) could change your tax band & therefore the amount of tax you will pay. For more information on tax rates & bands please visit the government website. You can lower your BIK liability by making a one-off payment or by payments made to your employer towards the private use of company car, you can find more detailed information via the government website, the Company Car and Car fuel Benefit calculator. More people are looking to reduce their Tax Liability by looking at Electric or Hybrid car, examples of these would be BMW 330e or the BMW Hybrid, Tesla Model 3, Toyota Hybrid, Kia Hybrid and the Electric Mustang to name a few.

All information provided is for general guidance only. Although every effort has been made to ensure that it is accurate, Midlands Car and Van leasing Ltd cannot accept any liability whatsoever for any inaccuracies contained within it, for any loss or damage, directly or indirectly, which may have been suffered as a result of using the information provided, whether arising in contract, a wrongful act or an infringement of a right or any other way. Company car tax rates are used as they may be known for the next one or two years, PAYE and NI thresholds can alter every year. You should always obtain independent advice from your own professional advisors prior to making a decision.

A vehicles fuel consumption, battery range and CO2 emission figure has been derived from the Worldwide Harmonised Light Vehicle Test Procedure (WLTP). These figures may not reflect real life driving results, which will depend upon a number of factors including the accessories fitted, variations in weather, driving styles and vehicle load. All figures shown are indicative & for comparability purposes with other vehicles that have had the WLTP test. Midlands Car & Van Leasing Ltd will accept no liability for vehicles that do not achieve a claimed miles per gallon figure or range for all fuel types as well as electric, plugin or hybrid vehicles.

Company Car Tax

Speak To The Experts