The Fleet Knowledge area is designed to help Fleet Decision Makers and Company Car Drivers understand the complexities of running a fleet or Company Car and the wide range of associated costs. Below we've provided a range of helpful articles and videos to help demystify some of the popular fleet terms to help ensure you have all the facts when choosing your next Company Car. And don’t forget to visit our Company Car Calculators for award-winning tools and calculators to help you find and compare cars.
What is Benefit-in-Kind Tax?
If you drive a Company Car you will be liable to pay Benefit-in-Kind (BiK) tax. The video above explains how this is calculated.
What is Benefit-in-Kind?
Whenever a company provides an employee with a non-cash benefit – such as a Company Car that is available for private use –
HMRC deems this to be the supply of a benefit, and the employee is liable for a tax charge. The tax charge is known as the Benefit-in-Kind (BiK)
What factors influence Benefit-in-Kind?
BiK taxation is one of the methods used by government to achieve its CO2 emissions reduction objectives. It uses a number of attributes to determine how much BiK tax someone should pay. In addition to the P11D value of the car it also takes into account its CO2 emissions (which is used to determine its Benefit-in-Kind Tax band) the type of fuel used, and the employee’s personal tax rate. To find out how to calculate the P11D value of your Company Car, view our ‘What is P11D?’ information below.
Low CO2 emissions are crucial to reducing Benefit-in-Kind tax liability, view Vauxhall’s low CO2 emissions car range using the link below.Source: www.vauxhall.co.uk