08 May, 2019

Company Car, Benefit In Kind and More

Don't be confused by BIK company car tax rates - our guide explains all and shows you how to calculate them

Company cars have long been used by businesses to reward and retain staff as an extra perk on top of a standard salary. Unfortunately, the Government or, more precisely, HM Treasury, is aware of this kind of incentive and levies tax on them. This company car tax is called Benefit-In-Kind (BIK) tax, as the cars are seen as an additional taxable benefit that falls outside of your standard National Insurance tax contributions. Whether you’re in a traditional company car scheme or gifted a company car allowance, it’s important to know how much tax you can expect to pay - especially if you’re the one choosing your company car.

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Link : https://www.autoexpress.co.uk/car-news/consumer-news/90125/company-car-tax-guide-2019-everything-you-need-to-know