BIK rates 2020 - BIK Tax Bands UK

In April 2020, the UK Government switched the CO2 figures used to calculate tax rates from the previous NEDC data set to WLTP. As such, there will be a change-over 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.

This change comes at the same time as a new set of BIK rates, prioritising electric cars. Pure-EVs are rated at 0% for FY 2020/21, as the UK Government aims to encourage drivers into electric cars. PHEVs recieve extremely low rates as before, but these are now graded based on the pure-electric range available. Those capable of travelling further on electric power, receive lower BIK rates.

Company car tax rates are designed to encourage company car drivers to choose cars with lower levels of CO2 and 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%).

Current company car BIK rates start at 0% for pure-electric cars, 3% for new PHEV models, 21% for the greenest hybrids, and 23% for any car with 100 g/km CO2 or more. From 12%, bands rise in 1% increments to a maximum of 37%, with diesel models subject to a 4% supplement should they not meet RDE2 tests.

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

Vehicle CO2 (g/km)	Electric range (miles)	FY 2020-21 %BIK Rate		FY 2021-22 %BIK Rate		FY 2022-23 %BIK Rate
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)	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		15		16		17
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	29	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		33	37	34	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 2020.

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.

Vehicle CO2 (g/km)	Electric range (miles)	FY 2020-21 %BIK Rate		FY 2021-22 %BIK Rate		FY 2022-23 %BIK Rate
Company Car Tax BIK Rates April 2020 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)	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+	2		2		2
1-50	70-129	5		5		5
1-50	40-69	8		8		8
1-50	30-39	12		12		12
1-50	<30	14		14		14
51-54		15		15		15
55-59		16		16		16
60-64		17		17		17
65-69		18		18		18
70-74		19		19		19
75		20		20		20
76-79		20	24	20	24	20	24
80-84		21	25	21	25	21	25
85-89		22	26	22	26	22	26
90-94		23	27	23	27	23	27
95-99		24	28	24	28	24	28
100-104		25	29	25	29	25	29
105-109		26	30	26	30	26	30
110-114		27	31	27	31	27	31
115-119		28	32	28	32	28	32
120-124		29	33	29	33	29	33
125-129		30	34	30	34	30	34
130-134		31	35	31	35	31	35
135-139		32	36	32	36	32	36
140-144		33	37	33	37	33	37
145-149		34	37	34	37	34	37
150-154		35	37	35	37	35	37
155-159		36	37	36	37	36	37
160+		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 2020.

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