Tax band gap widens BiK bills for identical company cars

Two drivers in identically specified company cars can end up with very different BiK bills, purely down to their income tax band - which matters when lower earners are being steered toward salary sacrifice schemes designed with higher-rate taxpayers in mind. The mechanics: taxable value is set first by P11D value and CO2-based rate, then multiplied by your income tax band, usually 20% or 40% in England, Wales and Northern Ireland, with Scotland running its own bands. A £45,000 EV sits at a 3% BiK rate and £1,350 taxable value, a PHEV at 13% and £5,850, so the gap between vehicle choices widens the further up the tax bands a driver sits. (Ayvens) THRIVE's company car BiK rates table sets out the appropriate percentages year by year.