Calculating Company Car Tax (Infographic)

Calculating Company Car Tax Infographic


If you’re looking to get a company car, then you have probably come across the term company car tax more than once. The chances are, if you’re going to have a company car or a van that you can take home then you will have to pay company car tax. We look at how to calculate company car tax with our handy calculating company car tax infographic.

If you’ve established that you do in fact have to pay company car tax then you’ll need to know how it’s calculated.

Essentially, the amount you will pay will depend on the P11d value of the car, the CO2 emissions and your personal tax bracket. The lower the P11d value and the emissions = the lower your company car tax will be.

How to calculate company car tax:

To calculate how much you will be paying in company car tax, you do the following;

  • Take the P11D value of the car; This is;
    • The list price
    • Delivery fees
    • Road tax
    • Any additional extras you asked for (satnav etc)
  • Multiply this by your company car tax rate – this will give you your benefit-in-kind rate
  • Multiply your BIK rate by your personal tax rate

And this total will be how much you pay in company car tax. For example;

Say a car has a P11D value with £10,000 and a company car tax rate of 15%. The BIK value will be £1500. If your personal tax rate is 20%, your company car tax on the vehicle will be £300 (20% of £1,500)

Both you and your employer pay for company car tax. Company car tax will come out of your salary the same as ordinary tax so you won’t have to worry about paying for it. However, we recommend you talking to your HR if you have any other queries.

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