If you determine your CO2 value (it is within a band or range), you will get the current BIK value of the vehicle, expressed as a percentage. Take your car’s P11D value and multiply it by his WITH AK and multiplying the resulting amount by your income tax margin – for example, £ 20,000 x 25% x 20% – you get your annual WITH AK Tax charge which in this case is £ 1000.
Note that WITH AK Tax rates tend to change every fiscal year, although the government announced in 2020 that it would adopt the BIK tax rates published in 2019 and freeze them at the 2022/23 level for another two years. The highest WITH AK The rate is currently 37%.
Calculation of BIK Price for diesel cars
Diesel cars are now largely frowned upon by the darling of the environmental lobby, with the result that the emissions tests have become tougher for them. The latest, mandatory for all new diesels sold from January 2021, is called Real Driving Emissions Step 2 (RDE2).
Diesel registered before this date and not RDE2 compliant (some received RED2 compliance early so contact your supplier) will add a 4% surcharge on their published BIK rate of up to 37% raised. Keep this in mind when considering a used diesel as a company car. To be clear, all new diesels are RDE2-compliant, which means there is no surcharge of 4%.
Diesel-electric hybrids are classified as vehicles with an alternative drive. Avoid paying a surcharge, regardless of whether they are RDE2-compliant or not.
Calculation of the BIK rate for electric cars
Zero CO2 emissions ensure that electric cars enjoy the lowest BIK rate. In the tax years 2020/21 it was even 0%; However, it rose to 1% in 2021/22; and from 2022/23 it will be 2%. In any case, EV drivers pay much less company car tax than others.
Calculation of the BiK tariff for hybrid and plug-in hybrid vehicles
Hybrid and plug-in hybrid (PHEV) vehicles enjoy the next lower BIK rates due to their low CO2 emissions. However, since their emissions are linked to the fact that they can travel on battery power alone, their BIK rates are calculated using a combination of CO2 emissions and the official pure range.
