Company Car Tax | Suffolk | Cecil & Larter Volvo


When you are provided with a company vehicle by your employer for personal use, this is considered a taxable benefit. As such you are liable to pay additional tax to the Government which is calculated by taking the P11D value of the vehicle and multiplying it by the BIK percentage.


The P11D can usually be found in the manufacturer's price list. If you are adding extras to your car such as metallic paint or Apple Car Play, the full retail price of each individual extra option must be added to the P11D value.


The Benefit in Kind (BIK) percentage is based on the CO2 emissions of the vehicle (shown in the table on the right). To find out your taxable benefit take the P11D value of your vehicle and multiply it by the percentage.


Multiply this taxable benefit by 20% or 40% depending on the level of income tax that you pay. This will give you an annual figure which you simply divide by 12 to calculate the monthly figure.


For guidance please see the examples below...

VehicleVolvo S90 Diesel Momentum D4
P11D £32,500
Metallic paint £700
Apple car paint £300
Total: P11D value + extras £33,500
CO2 emissions (g/km) 116
Company car BIK tax based on
CO2 emission level
23%
Taxable BIK (tax year 2016/2017):
23% of £33,500
£7,705
Annual company car tax (2016/2017)
20% income tax:
20% of £7,705
£1,541
40% income tax:
40% of £7,705
£3,082
Monthly company car tax (2016/2017)
20% income tax:
£1,541 divided by 12
£128.41
40% income tax:
£3,082 divided by 12
£256.83
VehicleXC60 Petrol T5 Automatic
R-Design Nav
P11D value£38,150
CO2 missions (g/km)157
Company car BIK tax based on
CO2 emission level
28%
Taxable BIK (tax year 2016/2017):
28% of £38,150
£10,682
Annual company car tax (2016/2017)
20% income tax:
20% of £10,682
£2,136.40
40% income tax:
40% of £10,682
£4,272.80
Monthly company car tax (2016/2017)
20% income tax:
£2,136.40 divided by 12
£178.03
40% income tax:
£4,272.80 divided by 12
£356.06