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  3. How is my P11d benefit in kind calculated for my car?
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  3. How is my P11d benefit in kind calculated for my car?

How is my P11d benefit in kind calculated for my car?

If your company car (owned, leased or hired by the company) is available to you for personal use, then a benefit in kind arises and is taxed on your personally.

In order to work out the value of the benefit, you need to collate the following information:

  • Find the price of the car – this is the list price when new and you should add any additional accessories if these weren’t included in the list price.
  • If you have made a capital contribution to the car, this should be deducted from the list price.
  • The list price is then multiplied by a percentage based on the car’s CO2 emissions.
  • There may be further adjustments to this figure if the car was not available during the tax year.

Calculation example

A director has a company car with a list price of £38,639.

Its CO2 emissions are 119 g/km.

If we look at the table for 2019/20 we will multiply the list price by 27% so the BIK is £10,432 if you had private use of the vehicle for the full tax year.

If the car is diesel, then there is a 4% supplement added – so the percentage applied would be 31%.
(The maximum percentage that can be applied to the list price is 37%.)

Therefore the director will pay personal tax on this amount, if he is higher rate tax payer, this will be £10,432 x 40% = £4,172.80.

The company will also pay Class 1A National Insurance of £10,432 x 13.8% = £1,439.61.

Updated on 15th May 2020

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