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.