Benefits in Kind (BIK) is tax that is applied to business drivers who receive benefits or perks in addition to their salary. For those who drive a company car for private use, they will have to pay BIK.
Every car has a BIK banding, which is based on the cars CO2 emissions and P11D value, which is the list price, including extras and VAT, but without the first year registration fee and vehicle tax. In simpler terms, the lower the CO2 emissions, the lower the BIK banding. This is one of the reasons why Toyota hybrids make great company cars!
The monetary benefit is valued and taxed by the government. The taxable annual figure is then divided into monthly payments and deducted from your wages by your employer.
BIK costs for Toyota drivers
The figures below offer an indication of the potential costs associated with BIK for a 20% income tax payer from 1 April 2022:
|TOYOTA MODEL||CO2 LEVEL||% OF PRICE TAXED||MARGINAL TAX RATE||P11D PRICE |
|TAX PAYABLE PER YEAR|
All New Aygo X 1.0 VVT-i Pure TSS 5-door
New Yaris Cross 1.5 VVT-i Icon Hybrid Auto
|Corolla Hatchback 1.8 VVT-i Icon Hybrid Auto||102 g/km||25%||20%||£25,250||£1,262.5|
|Corolla Touring Sports 1.8 VVT-i Icon Hybrid Auto||103 g/km||25%||20%||£26,520||£1,326|
|Toyota C-HR 1.8 VVT-i Icon Hybrid 120hp Auto||110 g/km||27%||20%||£28,255||£1,525.77|
|All New Toyota bZ4X Pure 7kW On Board Charger 150kW Auto||0 g/km||2%||20%||£41,895||£167.58|
|RAV4 2.5 VVT-i Icon Hybrid 215hp Auto||126 g/km||30%||20%||£32,740||£1,964.4|
|New RAV4 Plug-in 2.5 VVT-i Design Hybrid 302hp Auto||22 g/km||8%||20%||£42,520||£680.32|
|Land Cruiser 2.8 D-4D Active 3dr 5-seat||239 g/km||37%||20%||£41,620||£3,079.88|
|Highlander 2.5 VVT-i Excel Hybrid 248hp Auto||160 g/km||37%||20%||£51,040||£3,776.96|
*Please note that we have displayed the most affordable versions of each Toyota model from a BIK perspective and have excluded fuel cost contributions.
The factors used to calculate BIK taxation are largely benefited by Toyota's approach to improving the cleanliness, fuel efficiency, quality and longevity of their vehicles. You'll be able to experience peace of mind and lower costs thanks to the innovation and engineering of Toyota models.
Find out more about BIK tax, or discover our range of Business offers currently available at Snows by contacting your nearest dealership below:
Benefit-in-kind (BIK) - this is any benefit which employees receive from employment but are not included in a salary. The obvious example in our case is company cars, which are taxed according to the income of the employee.
Emissions - the amount of gas the car emits from the exhaust. Measured in terms of CO2 for company car tax purposes.
g/km - the level of carbon dioxide emitted by a car is measure in grams per kilometre.
P11D - this is the form that each employer must fill in annually and send to the tax office.
P11D value - this is the value of your car including RRP, VAT, delivery and any extras (such as metallic paint or satellite navigation). It does not include road tax or first registration fee.
Personal tax allowance - this is a sum of money that you're allowed to earn without being taxed upon it