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 CO 2 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 CO 2 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 CO 2 models that keep your tax bills low. Car tax bands are determined by CO 2 emissions and fuel type. 
Low Tax Bands
Opel offers a range of highly efficient low CO 2 models that keep your tax bills low. Car tax bands are determined by CO 2 emissions and fuel type. 

Any Questions? Contact the Opel Fleet Team

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Opel Fleet Team

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