Car BIK Advice

Fred2708

Hi,

I’m after some advice regarding benefit in kind tax as this is going to be my first time getting a car through work.

At the moment I’m earning the below.

£40k basic
£400 a month car allowance but this will go once I get my car through work.

I then earn commission on top of this which can boost my annual earnings up to say 60-65k.

The car I’m looking at says it has a BIK of 32%, can someone help me understand what I would pay?

Thanks in advance.

F

00ec25

use a calculator
1. for BIK
https://comcar.co.uk/companycar/tax/select/

2. for salary + bik
https://www.thesalarycalculator.co.uk/salary.php

Dazed_and_confused

This is a little simplistic but it could be something like,

Car P11D value £25,000
£25,000 x 32% = £8,000 company car benefit
£8,000 x 41%* tax = £3,280 extra tax to pay

*40% outside of Scotland

As we don't know what your total taxable income is there could be other impacts, loss of Personal Allowance if adjusted net income exceeds £100k or it could increase High Income Child Benefit Charge if your bonuses were lower than expected.