½Û×ÓÊÓƵ

The benefit of the private use by the employee or their family members of a company car or van) depends on whether the benefit is:

1. Ìý

   •ÌýÌýÌýÌý unlimited, where the employer pays all the costs of providing the car, or

2. Ìý

   •ÌýÌýÌýÌý limited, where the employee pays the fuel costs

Private use includes home commuting to and from work.

An online car benefit calculator is available.

Calculation methods for car BIK

The two ways of calculating the BIK are:

1. Ìý

   •ÌýÌýÌýÌý a percentage of the replacement value based on the age of the vehicle, plus a fixed charge

2. Ìý

   •ÌýÌýÌýÌý or a cents per kilometre mileage charge. This requires a mileage log and the rate also depends on the age of car

The BIK is calculated on a monthly basis. The employer can choose the method used, but that method must apply for the whole tax year.

Details of the percentage applied, the fixed charge and the