BIK explanation

[Shabaza]

Hi all,
wondering if anyone can help me navigate Benefit in Kind.
I have largely understood how BIK is calculated, however there is a few holes in my knowledge.
You are taxed according to pay. So at 20% if you earn below 50k and 40% if above.
But what if you earn for example £49k pa and the benefit in kind is worth £5k,
Does that mean you are now earning above the 50k bracket and get taxed at 40%?
or is it not seen as additional pay and you get taxed at 20%?


Also if i am paying circa £250 per month on the car to the government, who actually paid for the physical car itself?

Thanks in advance

[Scrump]

Your employer paid for the car, assuming it is a company car.
If the car is through a salary sacrifice scheme which attracts BIK then you pay for the car (as well as the BIK)

If the BIK takes you into the threshold for a higher tax rate then you pay the higher tax rate on that portion which is over the threshold.

[Fastdruid]

This is one where it really makes more sense to use one of the many calculators.

https://www.nextgreencar.com/company-car-tax/calcu...
https://comcar.co.uk/companycar/tax/select/
https://www.whatcar.com/news/company-car-tax-calcu...

[Shabaza]

appreciate the responses

[Comcar]

Use the Comcar link above if you want to input your salary to see the impact of a company car. The others expect you to know your marginal tax rate.

[Comcar]

Some of the car benefit will be taxed at 20% and some at 40% . Only the top slice of your earnings gets taxed at the higher rate.