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Jaguar XE Polaris White Grille

COMPANY CAR DRIVER

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FINANCE AND BENEFIT IN KIND (BIK) TAXATION

P11D and BIK

If you drive a company car you’ll be liable for Benefit in Kind or ‘BIK’ tax. How much you pay will depend on your own personal tax rate, the P11D value of the car (including the value of all options) and its CO2 emissions. The Jaguar online calculator takes all these criteria into account - showing you how much you’ll pay in tax each month for the model of your choice.

Calculate BIK BIK tax bands

OPTING OUT OF YOUR SCHEME

The team at your local Jaguar Retailer can show you all the facts and figures and whichever option you then choose, you’ll be making a well-informed decision.

Find your local retailer


THE TRUE COST OF FREE FUEL

If your company pays for fuel as well as your car, how does that affect your tax liability? Would you be better off paying your own fuel but claiming business mileage?

Free fuel – paid for by the company – sounds appealing. In reality, like any other benefit, it’s taxable.

So check whether you’ll be paying more in tax than you receive in ‘free’ fuel.
  • To do this, you need to know the BIK tax category of your car (whether or not it’s a company car). For example, in the current financial year (2014-15) the XF 2.2D 163 SE is rated at 21% BIK.
  • Next, multiply the % BIK of your car by the notional £21,700 figure that HMRC allocates to benefit of private fuel paid for by the company. So a 21% BIK rate x £21,700 equals £4,557.
  • Finally, multiply that figure by your own rate of income tax. If you’re a 40% taxpayer, the figure is £1,822.80. That’s how much extra tax you will pay HMRC each year for your ‘free’ fuel.

The Jaguar online BIK calculator can also calculate your tax liability for free fuel. Simply complete the ‘personalise your tax calculation’ section after you have input your car’s make and model for BIK. The free fuel tax cost will show as a separate column, so you can calculate your free fuel tax liability even if yours isn’t a company car.

Calculate BIK