Getting a company car can a great perk, especially if you’ve got a long commute or an old used car you constantly have to spend money on repairing.
Benefit-in-kind (BIK) refers to benefits you receive from your company that are not included in your salary and most high-value extras like company cars are eligible to be taxed.
Since April 2002 company car tax has been based on a car's P11D price and official CO2 emission figures. The amount of CO2 your car produces correlates to a BIK tax band each year.
The bands change every year, and diesel cars are currently subject to an additional three percent surcharge. This was due to be scrapped in April but will now remain in place until 2021.
The good news is that BIK tax bands are published well in advance so you should be able to calculate your monthly tax costs for the next three or four years easily.
See below BIK bands up to the 2019/20 tax year.
For help calculating your monthly tax bills, head to our company car tax calculator here.