Benefit In Kind Tax BIK | Discover the potential tax benefits of Toyota vehicles
Deciding on what company vehicle to choose can be a minefield. With this in mind, it is crucial to understand taxable benefits when selecting the best car for you and / or your fleet.
With many drivers and business owners often feeling inadequately informed, we have set out to explain in clear terms what Benefit In Kind (BIK) is, what it means to company car drivers / owners, and how shrewd business users can identify potential tax benefits of Toyota vehicles.
What is Benefit In Kind Tax BIK and how is it calculated?
Benefit In Kind is an employee ‘perk’, but it does not come without a price. The monetary benefit is valued and taxed by the government, with the taxable annual figure divided into monthly payments and deducted from your wages by your employer.
The value of a company vehicle is calculated by considering factors including the purchase price, the type of fuel it runs on and its CO2 emissions. Other considerations include its predicted resale value and level of income tax normally paid by the driver.
Why should business users choose a Toyota vehicle and how can this save them money?
The factors used to calculate BIK taxation harmonise with the developmental approach Toyota has been applying for years in order to improve the cleanliness, fuel efficiency, quality and longevity of our models.
Toyota offers a wide range of tax-efficient vehicles, more than half of which are electrified with eco-friendly hybrid technology to reduce emissions and therefore the tax you pay!
Our hybrid powertrains deliver impressively low CO2 emissions and offer very competitive whole-life running costs.
They emit around one-tenth of the NOx emissions of a Euro 6 diesel engine and do not require expensive particulate filters or other emission-reducing systems. Toyota’s regenerative braking significantly reduces both brake and tyre wear.
How much will a Toyota company car cost me?
Toyota offers 13 model lines, seven of which are dedicated hybrid models or can be specified with hybrid technology.
The figures below offer an indication of the potential costs associated with BIK for a 20% income taxpayer as from 1st April 2019. Please note that the most affordable versions of each model from a BIK perspective are displayed and exclude fuel cost contributions. Prices have also been rounded up to the nearest pound.
|
TOYOTA MODEL |
CO2 LEVEL |
% OF PRICE TAXED |
MARGINAL TAX RATE |
TAXABLE VALUE (P11D) |
TAX PAYABLE PER MONTH / YEAR |
|
Aygo |
93g/km |
22% |
20% |
£9,515 |
£35 / £419 |
|
Yaris Hybrid |
84g/km |
22% |
20% |
£16,485 |
£60 / £725 |
|
Corolla Hybrid |
76g/km |
22% |
20% |
£23,445 |
£86 / £1,032 |
|
C-HR Hybrid |
86g/km |
22% |
20% |
£24,195 |
£89 / £1,065 |
|
RAV4 |
102g/km |
24% |
20% |
£29,455 |
£118 / £1,414 |
|
GT86 |
196g/km |
37% |
20% |
£25,990 |
£160 / £1,923 |
|
Prius |
75g/km |
19% |
20% |
£24,175 |
£77 / £919 |
|
Prius Plug-in |
28g/km |
16% |
20% |
£31,695 |
£85 / £1,014 |
|
Prius + |
106g/km |
25% |
20% |
£27,640 |
£115 / £1,382 |
|
Land Cruiser |
199g/km |
37% |
20% |
£32,875 |
£203 / £2,433 |
|
Proace Verso |
127g/km |
33% |
20% |
£28,190 |
£155 / £1,861 |
|
Hilux (commercial) |
187g/km |
37% |
20% |
£24,994 |
£154 / £1,850 |
|
Land Cruiser (commercial) |
197g/km |
37% |
20% |
£31,964 |
£197 / £2,365 |
|
Proace (commercial) |
144g/km |
36% |
20% |
£23,519 |
£141 / £1,693 |
We have some great business leasing and contract hire deals across the entire Toyota model range Farmer and Carlisle Leicester & Loughborough.
Alternatively, call us on 0116 285 2851 today!
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