BIK rates and company car tax

company car BIK rates 2019

Important update: BIK rates 2020-2023

In April 2020, the UK Government will switch its CO2 figures used to calculate tax rates from the existing NEDC data set to WLTP. As such, there will be a changeover period where two different sets of BIK rates will be used - one for vehicles registered before 6th April 2020, and one for those registered after that date.

As the changeover date gets closer, Next Green Car will offer a choice of registration dates in its Company Car Tax Calculator tools. Until that time, we will continue to presume that those looking for BIK rates for company cars will be expecting to register them before April 2020. Should anyone be looking at models after that date, a table of ratings has been added lower down the page, though it is worth remembering that these bands will be based on WLTP CO2 figures.

Company car tax rates are designed to encourage company car drivers to choose cars with lower levels of CO2 and (from April 2018) NOx emissions; incentives are offered both to the company and to the recipient of the vehicle to select low emission vehicles.

Under the current system, company and employee company car tax are both based on a percentage of the official value of the car (called the 'P11D'), the percentage being primarily determined by the car's CO2 emissions. For the employee, the Benefit-in-Kind (BIK) is then taxed at the appropriate personal tax rate - usually collected through PAYE.

Company car tax payable by an employee is based on the vehicle's P11D value multiplied by the appropriate BIK rate (determined by the car's CO2 and fuel type) and the employee's income tax rate (basic rate of 20%, higher rate of 40% or additional rate of 45%).

Company car BIK rates 2019 - 2022

Current company car BIK rates start at 22% for petrol and RDE2 compliant diesel cars, the rate increasing in up to 1% increments as CO2 bands rise, up to a maximum of 37%. From 06 April 2018, to account for the greater level of NOx emissions, a 4% diesel car tax supplement is payable which applies for non-RDE2 compliant diesels, the vast majority of current diesel models.

All hybrid cars receive a reduced BIK rate as a result of their lower CO2 emissions, which tends to reduce their BIK rates by at least 2%. Note that for diesel hybrids, the 4% diesel surcharge does not apply, since they are not classed as diesel-powered cars, but alternatively fuelled vehicles for tax purposes.

Electric vehicles are also rewarded with lower BIK rates with battery electric cars BIK-rated at 16% for FY 2019/20, reducing to 0% during 2020/21, and then increasing to 1% and 2% for years 2021/22 and 2022/23 respectively.

From April 2020, new BIK bands come into force for plug-in models with CO2 emissions of 1-50 g/km, with the new BIK levels dependent on the official electric-only range in miles. Those with a range in excess of 130 miles are classed as pure-electric models for the purposes of BIK ratings (at 0%) , while those plug-in models with a range of less than 30 miles will be rated at 14%.

The table below shows how the percentage BIK rates vary with vehicle CO2 and electric-only range. The table represents petrol, diesel and electric related BIK rates for 2019-2023. Note that the below table bmakes use of current NEDC-derived CO2 data, and for cars set to be registered before April 2020. See seperate table for WLTP-derived CO2 BIK rates, for models registered from April 2020.

Company Car Tax BIK Rates April 2019 to March 2023
Table shows BIK rates for models registered before 6th April 2020, based on official NEDC CO2 figures.
Vehicle
CO2
(g/km)
Electric
range
(miles)
FY 2019-20
%BIK Rate
FY 2020-21
%BIK Rate
FY 2021-22
%BIK Rate
FY 2022-23
%BIK Rate
Petrol,
Electric,
RDE2
Diesel**
Non-
RDE2
Diesel**
Petrol,
Electric,
RDE2
Diesel**
Non-
RDE2
Diesel**
Petrol,
Electric,
RDE2
Diesel**
Non-
RDE2
Diesel**
Petrol,
Electric,
RDE2
Diesel**
Non-
RDE2
Diesel**
0   16 0 1 2
1-50 130+ 16 2 2 2
1-50 70-129 16 5 5 5
1-50 40-69 16 8 8 8
1-50 30-39 16 12 12 12
1-50 <30 16 14 14 14
51-54   19 15 15 15
55-59   19 16 16 16
60-64   19 17 17 17
65-69   19 18 18 18
70-74   19 19 19 19
75   19 20 20 20
76-79   22 26 20 24 20 24 20 24
80-84   22 26 21 25 21 25 21 25
85-89   22 26 22 26 22 26 22 26
90-94   22 26 23 27 23 27 23 27
95-99   23 27 24 28 24 28 24 28
100-104   24 28 25 29 25 29 25 29
105-109   25 29 26 30 26 30 26 30
110-114   26 30 27 31 27 31 27 31
115-119   27 31 28 32 28 32 28 32
120-124   28 32 29 33 29 33 29 33
125-129   29 33 30 34 30 34 30 34
130-134   30 34 31 35 31 35 31 35
135-139   31 35 32 36 32 36 32 36
140-144   32 36 33 37 33 37 33 37
145-149   33 37 34 37 34 37 34 37
150-154   34 37 35 37 35 37 35 37
155-159   35 37 36 37 36 37 36 37
160-164   36 37 37 37 37 37 37 37
165+   37 37 37 37 37 37 37 37

** Rate applies to diesel vehicles not meeting the RDE2 standard. For diesel-hybrids, the Non-RDE2 4% diesel surcharge does not apply. All BIK rates apply to cars registered since 1998. Source: HMRC 2019.

4% supplement for non-RDE2 compliant diesels

From April 2018, HM Treasury levies a 4% diesel supplement over petrol models to account for greater levels of NOx emissions for the most current diesel cars. The supplement applies to diesel cars not compliant with the Real Driving Emissions Step 2 (RDE2) test, which confirms that real-world emissions are close to, or better than, the Euro 6 emissions standards for NOx.

The RDE2 test was developed in response to the Volkswagen emissions scandal and other subsequent research which shows that even the latest Euro 6 models are associated with higher NOx emissions when driven on real roads as compared to the official test which is conducted on a rolling-road in a laboratory.

As of the start of 2018, no diesel models have yet passed the RDE2 test as the procedure itself is under final review. However, new diesel models are expected to be submitted to the test from April 2018. As RDE2 compliant models become available on the UK market, Next Green Car's tax calculators will automatically remove the 4% supplement where applicable.

WLTP Company car BIK rates 2020 - 2023

Company Car Tax BIK Rates April 2020 to March 2023
Table shows BIK rates for models registered from 6th April 2020, based on official WLTP CO2 figures.
Vehicle
CO2
(g/km)
Electric
range
(miles)
FY 2020-21
%BIK Rate
FY 2021-22
%BIK Rate
FY 2022-23
%BIK Rate
Petrol,
Electric,
RDE2
Diesel**
Non-
RDE2
Diesel**
Petrol,
Electric,
RDE2
Diesel**
Non-
RDE2
Diesel**
Petrol,
Electric,
RDE2
Diesel**
Non-
RDE2
Diesel**
0   0 1 2
1-50 130+ 0 1 2
1-50 70-129 3 4 5
1-50 40-69 6 7 8
1-50 30-39 10 11 12
1-50 <30 12 13 14
51-54   13 14 15
55-59   14 15 16
60-64   16 17 18
65-69   16 17 18
70-74   17 18 19
75-79   18 22 19 23 20 24
80-84   19 23 20 24 21 25
85-89   20 24 21 25 22 26
90-94   21 25 22 26 23 27
95-99   22 26 23 27 24 28
100-104   23 27 24 28 25 29
105-109   24 28 25 29 26 30
110-114   25 39 26 30 27 31
115-119   26 30 27 31 28 32
120-124   27 31 28 32 29 33
125-129   28 32 29 33 30 34
130-134   29 33 30 34 31 35
135-139   30 34 31 35 32 36
140-144   31 35 32 36 33 37
145-149   32 36 33 37 34 37
150-154   34 37 35 37 35 37
155-159   34 37 35 37 36 37
160-164   35 37 36 37 37 37
165-169   36 37 37 37 37 37
170+   37 37 37 37 37 37

** Rate applies to diesel vehicles not meeting the RDE2 standard. For diesel-hybrids, the Non-RDE2 4% diesel surcharge does not apply. All BIK rates will apply to cars registered from April 2020. Source: HMRC 2019.

Search for models by BIK rate here

Chris Lilly

Author:Chris Lilly
Date Updated:12th Jul 2019

Latest company car tax news