What is Benefit in Kind (BiK)?

You pay Benefit in Kind (or BiK) tax if you have a company car. Benefit-in-kind tax is paid to HMRC on certain work benefits that you're allowed to use in your own free time – this includes your car. The amount you'll owe varies depending on the vehicle's cost – called the P11d value – and the car's emissions and fuel type. When you're researching company cars, it's well worth checking how much BiK tax you'll have to pay as it could be quite a lot.