Company car BIK calculation

[BolshieBastard]

Son's been offered a company car as part of an employment package and needs to know how much tax he'll pay on the car compared to a higher salary without the car.

Salary is between £15k-£20k so basic rate tax payer. Car is Renault Clio which has a P11D BIK in year 1 of about £13500. Emissions are said to be 99g/km if this is relevant!

Im not clued up how much tax he'll pay on this. Can anyone explain on a salary of say £15k, how much BIK tax would he pay on the car with a value of £13500 and can you explain how I can work this out for him in future?

TIA

[Kenny@MyAccountantFriend]

Hi

The following link can be used to calculate the BIK applicable on the car.

Please note that the percentages will increase by 2% each year going forward as well. So the amount of tax payable will increase year on year.

http://cccfcalculator.hmrc.gov.uk/CCF0.aspx

[Andy Hallett]

There are tax tables on HMRC website which show how much the BIK liability is by CO2.

[BolshieBastard]

Thanks both. I can see calculating the BIK is not an exacting science and is influenced by price of car, additions, excluding first reg costs and the like.

So, if a car has a BIK in year 1 of £350 and BIK in year 2 of £600, he just needs to divide these figures by 12 to determine the extra tax he'll pay per month, yes?

[northernladuk]

Does he come in after work and say 'Papa!!'

[Kenny@MyAccountantFriend]

Yea that will be correct once his tax code has been updated with the changes.

Which will occur after the p46 (car) form is sent to HMRC by the employer confirming the company car details.