The employee is taxed on 'notional pay' based on the car's price when new, multiplied by a percentage. The default rule is that this is calculated as 30% of the car's original market value, ie, its price when new.
For example, if the employee is supplied with a new car costing EUR 60,000, the BIK is 30% × EUR 60,000 = EUR 18,000.
The 30% can be reduced further depending on the car's emissions category and the distance travelled for work purposes during the year.
For 2023 and later tax years this is:
| | Emissions category |
| Lower limit (km) | Upper limit (km) | A | B | C | D | E |
| 26,000 | 22.5% | 26.25% | 30% | 33.75% | 37.5% |
| 26,001 | 39,000 | 18% | 21% | 24% | 27% | 30% |
| 39,001 | 48,000 | 13.5% | 15.75% | 18% | 20.25% | 22.5% |
| 48,001 | | 9% | 10.5% | 12% | 13.5% | 15% |
Note
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Web page updated on 17 Mar 2025 15:25