Farley And Partners

VEHICLE AND FUEL BENEFITS IN KIND (BIK)

The taxable BIK is calculated as a percentage of the car’s UK list price. The percentage depends on the car’s CO2 emissions in grams per kilometre (g/km).

Emissions Petrol Diesel
0 – 50g/km  5% 8% 
51 – 75g/km 9%  12% 
76 – 94g/km 13%  16% 
Over 94g/km add 1% for every 5g /km
210g/km* and over 37% maximum

 

* 195g/km and over for diesel.

Chargeable on employees earning £8,500 or over (including BIK) and directors. The list price is on the day before irst registration, including most accessories and is reduced by any employee’s capital contribution (max £5,000) when the car is irst made available.

Where the cost of all fuel for private use is borne by the employee, the fuel beneit is nil. Otherwise, the fuel beneit is calculated by applying the car beneit percentage (above) to £22,100 (2014/15 £21,700).

Vans where private use is more than home to work travel; £3,150 (2014/15, £3,090) beneit and £594 (2014/15, £581) for private fuel. Payments by employees for private use may reduce the BIK. Vans with zero emissions have a beneit of £630.

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