Company car tax calculator
Use our helpful tool to calculate your Benefit in Kind
Volkswagens are a great fleet choice due to their reliability, excellent safety features, top-of-the-range technology, German engineering and competitive pricing. Our range of drivetrains also provide a range of CO2 values across all models, so you can choose the most tax efficient vehicle to suit you.
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The P11D value is the list price of a car including VAT and any delivery charges but it does not include the first registration fee or road tax.
Volkswagen is an ideal choice for your company fleet
Whatever your business needs and your employees want, we’ve got a model to suit you.
Our models cover a wide range of your employees' needs and personal desires. Whether they’re keen to drive a diesel, petrol, plug-in hybrid or electric vehicle, we have one of the largest ranges on the market for them to choose from.
Every business is different and so are its staff. So when it comes to picking the right vehicle, you need a manufacturer that has a model to suit both your needs and your personal style. From the luxurious and understated Arteon that’s perfect for long-distance comfort, to the sporty Golf that gives you a thrilling drive, Volkswagen has a style for you.
Everyone wants to purchase a car that will still be worth something when they’re ready to sell it on. Volkswagens are always in high-demand and they’re well-known for retaining their value long after manufacture, mainly due to their strong performance record and extensive list of features.
A fuel efficient fleet is simply good business. It saves you money in the long run and it saves your employees time at the fuel pump. It also saves you money on taxes as company cars are taxed on their CO2 emissions. We’ve developed our Volkswagens to be environmentally friendly; from the diesel cars to the plug-in hybrids. So you can lower your tax bill and help the planet.
This tool is for fleet managers, small business and company car drivers, so the way you manage and pay for your company car tax may vary. For example, company car drivers are liable to pay a company car tax called Benefit-in-Kind (BiK). This is put in place to reflect the benefit of having a car you can also drive for private use. It’s also used as an incentive for drivers to choose a more environmentally-friendly car, as the tax charged is directly related to the CO2 emissions of that vehicle.
Fleet managers have a similar incentive as they’re also offered a lower tax bill in relation to the CO2 emissions of their fleet.
Company car tax is based on a vehicle’s Benefit in Kind (BiK) rate, and a BiK rate is based on how much your vehicle pollutes the atmosphere. The more CO2 emissions, the higher its BiK rate. Of course, electric vehicles have the lowest BiK rate.
Our calculator works out your BiK rate for you by multiplying the P11D value by the BiK percentage banding, and then multiplying that figure by your tax band.
The P11D price is the price of the car for tax purposes (the P11D price can be found on this site and in our brochures). Any capital contributions made by the employee (up to a maximum of £5,000) are deducted from the list price.
Any optional extras of your vehicle are usually added to your P11D price. For example, most Volkswagens have Bluetooth as standard, but if yours doesn't and you choose it as an extra, it will be added to the P11D price.
Your annual salary dictates the amount of company car tax you will pay. Employees who fall into the 20% income tax bracket will pay 20% of the taxable portion of the car’s P11D value. Likewise, those in the 40% bracket will pay 40% on the taxable chunk of the P11D. This will usually be deducted from your monthly pay packet.