Knowledge Base

COMPANY CAR DRIVERS' KNOWLEDGE AREA

What Is Benefit-In-Kind Tax?

Whenever a company provides an employee with a non-cash benefit – such as private medical cover or a Company Car that is available for private use – the tax authority deems this to be the supply of a benefit, and the employee is liable for a tax charge. The tax charge is known as the Benefit-in-Kind (BiK).

Which Factors Influence Benefit-In-Kind?

BiK taxation is one of the methods used by the government to achieve its CO2 emissions reduction objectives. It uses a number of attributes to determine how much BiK tax someone should pay. In addition to the taxable value of the car it also takes into account its CO2 emissions (which is used to determine its Benefit-in-Kind Tax band) the type of fuel used, and the employee’s personal tax rate.

If you are supplied with a company van that is also available for private use, the calculation is much simpler. In this situation the tax authority has established a value of €X,XXX for the taxable benefit, plus a further  €XXX if you are provided with free fuel for private use. Simply multiply these figures by the highest rate at which you pay income tax to calculate your annual Benefit-in-Kind Tax liability.
Benefit-In-Kind Calculator
To calculate how much BiK tax you would pay on a Company Car use our handy Benefit-in-Kind Tax calculator. 
GO TO CALCUALTOR
Low CO2 Emissions Car Range
Opel offers a range of highly efficient low CO2 models that keep your tax bills low. Car tax bands are determined by CO2 emissions and fuel type. 
Low Tax Bands
Opel offers a range of highly efficient low CO2 models that keep your tax bills low. Car tax bands are determined by CO2 emissions and fuel type. 

Any Questions? Contact the Opel Fleet Team

Contactfleet@opel.xx
01234 2345678

Mo-Fr from 8 am to 6 pm

 

Calls are free from [enter country name] landing phone. Mobile phone carriers may charge.

 
Opel Fleet Team

Opel Lane 12-16

12345 Opel City Nord