BIK
Benefit in Kind is the tax company-car drivers pay on the perk of a car provided by their employer. The amount depends on the car’s list price, your income tax band and — crucially — its CO2 emissions: rates run from 2% for pure electric cars up to 37% for the highest-emitting models. This is why electric cars and plug-in hybrids dominate UK company-car choice lists.
Example
A £40,000 EV at 2% BIK costs a 20% taxpayer around £160 a year in tax; a £40,000 diesel at 37% costs nearly £3,000.