Company Car Tax

benefit in kind hero

0% Benefit in Kind

As an employee, you may receive a company car for personal use as a Benefit in Kind (non-cash value). Every BiK has a tax rate that is applied to your income tax.

Starting in April 2020, all Tesla cars will be eligible for 0% BiK rate during the 2020-2021 tax year. Petrol and diesel cars will be taxed at higher BiK rates — up to 37%.

Custom Order See inventory

Your Benefit in Kind Tax

Compare your tax rate for a Tesla car with a petrol/diesel car. Our tax calculation is based on the following factors:

1. Car price

The list price of your car, including options.

2. Tax bracket

Your tax bracket determines the net Benefit in Kind you pay.

3. Emissions

CO2 emissions are also taken into account for the estimated calculation.

Comparison Cars
# Comparison Car Purchase Price Vehicle Excise Duty First Registration Tax CO2 g/km BIK % Monthly Bik Tax
1 Mercedes C220 2.1D £35,845 £170 £55 119 26% £309
2 BMW 520 2.0D £39,170 £150 £55 110 25% £325
3 Mercedes Benz C 43 AMG £48,795 £1,280 £55 208 37% £585
4 BMW 730d £69,565 £210 £55 142 31% £716
5 BMW M5 Competition £98,100 £1,815 £55 241 37% £1,187
6 Land Rover Range Rover Sport SDV6 £68,155 £1,280 £55 195 37% £824
7 Mercedes Benz GLC 63 AMG £77,169 £2,135 £55 278 37% £925

References:
https://www.gov.uk/government/publications/review-of-wltp-and-vehicle-taxes
https://www.gov.uk/vehicle-tax-rate-tables
https://www.gov.uk/income-tax-rates

The tax brackets for 2020 are based on the currently announced tax rates and are therefore subject to change. Benefit in Kind for electric vehicles for tax year 2019/20 is 16%. It is planned to change to 0% in 2020/21, 1% 2021/22 & 2% in 2022/23.

While every effort has been made to reflect the above information in a correct and up to date manner, we cannot exclude the possibility that any of this information is not or no longer, especially as some of this information is subject to change by third parties. More specifically are the variables for the comparison cars based on information sourced in January 2020, which variables may be subject to change and result in an inaccurate comparison if they do. For that reason, this information should be considered as indicative only and no rights can be derived from it.

* Benefit in Kind values are calculated using the vehicle 'list price', which excludes the Government Plug-In Grant incentive. Benefit in Kind values for the comparison vehicles are only estimates based on certain assumptions, including list price, vehicle excise duty, First Registration Tax, CO2 g/km and income tax rate.

Income tax rates in 2019-20:
• Income up to £12,500 - 0% income tax. This is your personal tax-free allowance.
• Income between £12,501 and £50,000 - 20% income tax.
• Income between £50,001 and £150,000 - 40% income tax.
• Income above £150,001 - 45% income tax.