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 2019:
|TOYOTA MODEL||CO2 LEVEL||% OF PRICE TAXED||MARGINAL TAX RATE||TAXABLE VALUE (P11D)||TAX PAYABLE PER MONTH / YEAR|
|Aygo||93g/km||22%||20%||£9,515||£35 / £419|
|Yaris Hybrid||84g/km||22%||20%||£16,485||£60 / £725|
|Corolla Hybrid||76g/km||22%||20%||£23,445||£86 / £1,032|
|C-HR Hybrid||86g/km||22%||20%||£24,195||£89 / £1,065|
|RAV4||102g/km||24%||20%||£29,455||£118 / £1,414|
|GT86||196g/km||37%||20%||£25,990||£160 / £1,923|
|Prius||75g/km||19%||20%||£24,175||£77 / £919|
|Prius Plug-in||28g/km||16%||20%||£31,695||£85 / £1,014|
|Prius +||106g/km||25%||20%||£27,640||£115 / £1,382|
|Land Cruiser||199g/km||37%||20%||£32,875||£203 / £2,433|
|Proace Verso||127g/km||33%||20%||£28,190||£155 / £1,861|
|Hilux (commercial)||187g/km||37%||20%||£24,994||£154 / £1,850|
|Land Cruiser (commercial)||197g/km||37%||20%||£31,964||£197 / £2,365|
|Proace (commercial)||144g/km||36%||20%||£23,519||£141 / £1,693|
*Please note that we have displayed the most affordable versions of each Toyota model from a BIK perspective and have excluded fuel cost contributions. All prices have been rounded up to the nearest pound.
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. Toyota offers a broad range of tax-efficient vehicles, more than half of which are electrified with eco-friendly hybrid technology to reduce emissions and therefore, the tax that you pay.
From the All-New RAV4 to the perfectly practical Prius, Toyota Hybrid power trains emit around one-tenth of the NOx emissions of a Euro 6 diesel engine. Therefore, you do not require expensive particulate filters or other emission-reducing systems. Overall, you can experience peace of mind and lower costs thanks to the innovation and engineering of Toyota models.
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 - currently £11,850.