Company Car Tax is a tax made to reflect the benefit of being given a company car.
Company Car Tax is decided by the government but since April 2002 it has put emissions into the equation, rewarding company car drivers for choosing greener vehicles. This is great news for our customers who are making use of othe Hybrid and Plug-In vehicles that our manufacturers have on offer.
Our teams include business specialists who will help you to understand how these things are calculated in order for you to make an informed and finanically sound decision.
It can all seem a bit daunting when you enter the world of company car tax but here at Vantage we would like to make it as clear as possible. We have set up an example below to help you understand how the company car tax is calculated.
1) Take your company car's P11D value, this is the total value of the car including VAT and extras (for this example £15,000)
2) Multiply this value by the car's company car tax rate which is dependent on CO2 emissions (for this example 15%) to get your Benefit in Kind (BIK) amount
3) Multiply your BIK value by your personal tax rate - 20%, 40% or 50% - (for this example 40%).
This will give you the amount of company car tax payable.
Example Answer: £15,000 x 15% = £2,250 (BIK amount) x 40% = £900 per year
Don't worry, our team of Contract Hire and Leasing specialists will work this out for you. All you have to do is contact your nearest Vantage centre to start the process and your consultant will guide you through the whole process so it is a stress free and enjoyable process.
We offer a fantastic variety to company car drivers across our five franchises, Toyota, Lexus, Kia, Škoda and Citroën, with great BIK rates available. Contact us today to get the ball rolling on your new company car or for more advice on how company car tax works.
