Company Car Drivers and BIK

Company Car Tax - What You Need To Know

A key element to consider when choosing a company car is the amount of tax it'll incur. You will pay tax on a percentage of the P11D value of the car. The benefit in kind (BIK) rate is worked out by the amount of CO2 emissions the car produces. The lower the emissions, the lower the percentage.

How do I calculate my BIK tax?

To calculate the company car - or BIK - tax, multiply the P11D value by the BIK percentage banding, then multiply that figure by your tax band - i.e. 20% or 40%. This will give you your annual tax. Divide by 12 to get your monthly outgoing.

P11D Price x BIK Rate x Personal Tax Band = Annual tax you will need to pay. HMRC will advise you how this deduction will be made.

 P11D Price List 

Why MGMakes Sense

Choose MGfor your company car and you'll enjoy high levels of specification, impressive fuel efficiency and emission reducing technologies. Not only does our range have something for everyone, but will also have flexible finance options that will work for you, whether you are self-financing or funded by your company.

At Read MGwe can get you on the road in just 4 simple steps:

  • Select the model you are interested in
  • Work with us to agree simple terms for your contract
  • Pick up the keys and drive away

What are the Benefits of Choosing MG?

Driving an MGfor your business not only gives you access to our full range of award-winning vehicles, but you'll also enjoy benefits including:

  • Flexible finance solutions
  • Time saving tools to help with your finance calculations
  • Lower lifetime running costs
  • Access to our dedicated in-house business team
  • A no-fuss process from the start to the finish line

Why C02 Makes A Difference

The greener your car, the lower the CO2 emissions meaning you'll pay less tax.