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 because HMRC data shows 260,000 company car drivers earned below £50,000 in 2024/25 (Fleet News [https://fleetnews.co.uk/news/what-do-people-earn-who-have-access-to-a-company-car]). 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. In an illustrative Ayvens example using a 3% EV rate (the rate is 4% in 2026/27), a £45,000 EV has a £1,350 taxable value and a PHEV at 13% has £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.