How do I calculate my BIK tax?
The calculation to work out the BIK tax amount payable is detailed as below.
P11d Value x BIK % banding (table below) x tax band i.e., 20%/40% or 45% there is good and very detailed example on the governments website which can be found here: http://cccfcalculator.hmrc.gov.uk/CCF0.aspx
Source: Budget 2014, Budget 2015, Spending Review 2015.
Notes: For cars registered since 1998. For diesel hybrid powered cars, the 3% diesel surcharge in 2014-15 and 2015-2016 does not apply. For HMRC purposes, Fuel Type E is for zero-emission cars (including those which run on electricity only), Fuel Type D is for all diesel cars (former types D and L), and Fuel Type A is for all other cars (former types P, H, B, C, G).