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Company car benefit-in-kind tax
Company car benefit-in-kind tax rates already announced for the three years 2020-2021, 2021-2022 and 2022-2023 were confirmed in the March 2020 Budget. The Chancellor also announced that rates would then be frozen for the following two financial years, 2023-2024 and 2024-2025. This means that a pure EV will have 0% BIK in 2020-2021, 1% BIK in 2021-2022, and 2% BIK in 2022-2023 – and in 2023-2024 and 2024-2025.
Due to the transition to carbon dioxide (CO2) emission testing under the new Worldwide harmonised Light vehicles Test Procedure (WLTP) from April 2020, the Government has adopted a twin-track approach for company car benefit-in-kind tax rates.
That sees separate rates for cars first registered before April 6, 2020 and those first registered from April 6, 2020. This approach remains in place for the two financial years, 2020-2021 and 2021-2022 before company car benefit-in-kind tax rates realign in 2022-2023. Those already announced 2022-2023 rates will now be sustained throughout the tax years 2023-2024 and 2024-2025.
Company car benefit-in-kind tax rates for cars first registered before April 6, 2020
| % of P11D price | 2019/20 CO2 g/km | 2020/21 CO2g/km/(electric mileage range) | 2021/22 CO2g/km/(electric mileage range) | 2022/23 to 2024/25 CO2 g/km/(electric mileage range) |
| 0 | N/A | 0 | N/A | N/A |
| 1 | N/A | N/A | 0 | N/A |
| 2 | N/A | 1-50 (up to 130 miles | 1-50 (up to 130 miles | 0-50 (up to 130 miles |
| 5 | N/A | 1-50 (70-129 miles) | 1-50 (70-129 miles) | 1-50 (70-129 miles) |
| 8 | N/A | 1-50 (40-69 miles) | 1-50 (40-69 miles) | 1-50 (40-69 miles) |
| 12 | N/A | 1-50 (30-39 miles) | 1-50 (30-39 miles) | 1-50 (30-39 miles) |
| 14 | N/A | 1-50 (under 30 miles) | 1-50 (under 30 miles) | 1-50 (under 30 miles) |
| 15 | N/A | 51-54 | 51-54 | 51-54 |
| 16 | 0-50 | 55-59 | 55-59 | 55-59 |
| 17 | N/A | 60-64 | 60-64 | 60-64 |
| 18 | N/A | 65-69 | 65-69 | 65-69 |
| 19 | 51-75 | 70-74 | 70-74 | 70-74 |
| 20 | N/A | 75-79 | 75-79 | 75-79 |
| 21 | N/A | 80-84 | 80-84 | 80-84 |
| 22 | 76-94 | 85-89 | 85-89 | 85-89 |
| 23 | 95-99 | 90-94 | 90-94 | 90-94 |
| 24 | 100-104 | 95-99 | 95-99 | 95-99 |
| 25 | 105-109 | 100-104 | 100-104 | 100-104 |
| 26 | 110-114 | 105-109 | 105-109 | 105-109 |
| 27 | 115-119 | 110-114 | 110-114 | 110-114 |
| 28 | 120-124 | 115-119 | 115-119 | 115-119 |
| 29 | 125-129 | 120-124 | 120-124 | 120-124 |
| 30 | 130-134 | 125-129 | 125-129 | 125-129 |
| 31 | 135-139 | 130-134 | 130-134 | 130-134 |
| 32 | 140-144 | 135-139 | 135-139 | 135-139 |
| 33 | 145-149 | 140-144 | 140-144 | 140-144 |
| 34 | 150-154 | 145-149 | 145-149 | 145-149 |
| 35 | 155-159 | 150-154 | 150-154 | 150-154 |
| 36 | 160-164 | 155-159 | 155-159 | 155-159 |
| 37 | 165+ | 160+ | 160+ | 160+ |
For each tax year add 4% for diesel cars up to a maximum of 37%. Cars that meet the Real Driving Emissions Step 2 (RDE2) standard are exempt.
Company car benefit-in-kind tax rates for cars first registered from April 6, 2020
| % of P11D price | 2020/21 CO2 g/km/(electric mileage range) | 2021/22 CO2 g/km/(electric mileage range) | 2022/23 to 2024/25 CO2g/km/(electric mileage range) |
| 0 | 0-50 (up to 130 miles) | N/A | N/A |
| 1 | N/A | 0-50 (up to 130 miles) | N/A |
| 2 | N/A | N/A | 0-50 (up to 130 miles) |
| 3 | 1-50 (70-129 miles) | N/A | N/A |
| 4 | N/A | 1-50 (70-129 miles) | N/A |
| 5 | N/A | N/A | 1-50 (70-129 miles) |
| 6 | 1-50 (40-69 miles) | N/A | N/A |
| 7 | N/A | 1-50 (40-69 miles) | N/A |
| 8 | N/A | N/A | 1-50 (40-69 miles) |
| 10 | 1-50 (30-39 miles) | N/A | N/A |
| 11 | N/A | 1-50 (30-39 miles) | N/A |
| 12 | 1-50 (under 30 miles) | N/A | 1-50 (30-39 miles) |
| 13 | 51-54 | 1-50 (under 30 miles) | N/A |
| 14 | 55-59 | 51-54 | 1-50 (under 30 miles) |
| 15 | 60-64 | 55-59 | 51-54 |
| 16 | 65-69 | 60-64 | 55-59 |
| 17 | 70-74 | 65-69 | 60-64 |
| 18 | 75-79 | 70-74 | 65-69 |
| 19 | 80-84 | 75-79 | 70-74 |
| 20 | 85-89 | 80-84 | 75-79 |
| 21 | 90-94 | 85-89 | 80-84 |
| 22 | 95-99 | 90-94 | 85-89 |
| 23 | 100-104 | 95-99 | 90-94 |
| 24 | 105-109 | 100-104 | 95-99 |
| 25 | 110-114 | 105-109 | 100-104 |
| 26 | 115-119 | 110-114 | 105-109 |
| 27 | 120-124 | 115-119 | 110-114 |
| 28 | 125-129 | 120-124 | 115-119 |
| 29 | 130-134 | 125-129 | 120-124 |
| 30 | 135-139 | 130-134 | 125-129 |
| 31 | 140-144 | 135-139 | 130-134 |
| 32 | 145-149 | 140-144 | 135-139 |
| 33 | 150-154 | 145-149 | 140-144 |
| 34 | 155-159 | 150-154 | 145-149 |
| 35 | 160-164 | 155-159 | 150-154 |
| 36 | 165-169 | 160-164 | 155-159 |
| 37 | 170+ | 165+ | 160+ |
For each tax year add 4% for diesel cars up to a maximum of 37%. Cars that meet the Real Driving Emissions Step 2 (RDE2) standard are exempt.
