Working it all out
To work out the BIK value of a company car, you multiply the car’s P11D price (list price including optional extras, VAT and delivery charges, less the first-year registration fee and annual road tax) by the percentage BIK band the car sits in. The BIK band is determined by the CO2 emissions of the vehicle.
The actual figure you’ll pay is this number multiplied by your income tax band of 20% or 40%.
To allow for easy comparison of vehicles by BIK rate, save yourself a headache and use our BIK rate calculator.