How do company cars work?

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So from my research, the calculation is:
P11D (ie value) x CO2 emission bracket (Aka BIK band) = BIK value
BIK value x tax bracket = payment amount

So eg, for an electric car with a P11D of 50K on a 20% tax payer wage:
50,000 x 0.02 (as electric car) x 0.2 = £200 per year

So £17 pcm. Surely it can't be that cheap?! I must be being stupid?

Where are you getting the 0.02 from?

@Fernandina

Where are you getting the 0.02 from?

Pure electric cars are taxed at a BIK rate of 2% until 2025. Other types of car BIK rates are dependent on their CO2 output

BIK is worked out on Co2 so that doesn’t sound unlikely for a fully electric vehicle.

So you get to drive round in a car worth £50 grand for £17 a month all in? Nice work if you can get it.

Mind you, you've got to charge the thing. But then I expect they'll let you claim that on expenses.

@Fernandina

So you get to drive round in a car worth £50 grand for £17 a month all in? Nice work if you can get it.

Mind you, you've got to charge the thing. But then I expect they'll let you claim that on expenses.

I don't know, that is why I am asking the question. There is no need to be chippy.

And no, unless you get a fuel card, which is taxed differently/additionally you would be paying to charge unless for travel expenses for commuting to a non-home office. It is cheaper to charge an electric car though, than fill a petrol/diesel.

That is just the tax element based on the car. It depends on your organisations scheme whether there are other costs attached.

that sounds about right - try this -

cccfcalculator.hmrc.gov.uk/CCF0.aspx

Tbf it does sound quite cheap.

My parents wage is 45k it cane out around £38 per month for cars aro und 35k. I went for plug in hybrid in the end though.

Sorry I thought you earned 50k as well.

It could be right

So £17 pcm. Surely it can't be that cheap?! I must be being stupid?

Yes.

Yes.