What is Benefit-In-Kind tax?
Any benefit that you can use in your personal time as well as during business hours, such as a vehicle, is considered a perk and HMRC will require you to pay tax.
The type of tax HMRC requires you to pay is called Benefit-In-Kind, which is often abbreviated to BIK.
The amount you pay depends on what kind of benefits you get and their value, which your employer works out.Enquire now
What is BIK tax on a company car?
A company vehicle is considered to be a taxable perk and results in the owner of the vehicle paying a Benefit-In-Kind tax value.
The amount of BIK tax you’ll pay will be broken down into certain pay brackets which consider the environmental impact of the vehicle.
BIK tax rates are determined in part by using the amount of CO2 emissions the car releases. Please see table below.
What is BIK tax on a company van?
You will pay tax on a company van if the driver or a member of their family or household make private use of it.
If the driver has the van mainly for work journeys (for example, delivering goods or making calls to customers) and the only private use is commuting, there is no tax to pay. In addition there will be a flat rate van fuel benefit charge.
The use of company fuel cards?
For personal travel including journeys to and from work, is effectively using company funds to pay for personal expenses this is classed as a taxable benefit.
At Agility Fleet, our team are on hand to support and guide you through your fleet and personal contract hire needs.
If you have an enquiry please call us on 01527 571 605 or email us on firstname.lastname@example.org
If your enquiry is related to vehicle accident or breakdown please call our 24 hours helpline 01527 571 605