• Shepherd Partnership

Double-check electric car Benefit in Kind (BiK) calculations

We are aware that HMRC’s online forms P11D and P46(car) are not always calculating an electric car Benefit in Kind (BiK) correctly.

Some employees provided with electric cars for private use have been affected. To report the benefit of a fully electric car on a paper P11D form, the approved CO2 emissions figure would be 0g/km. The type of fuel or power used would be letter "A". In some cases HMRC’s online calculator has defaulted to cars with high CO2 emissions. This resulted in a BiK calculation at 37% of the list price rather than 1% which should apply for electric cars for the 2021/22 tax year.

Employees need to check their tax calculations and code numbers to ensure these are correct. The BiK should be 1% of the list price in 2021/22 and 2% in 2022/23.

If the BiK is found to be incorrect, employees should speak to their employer. The employer will need to call the employer helpline: 0300 200 3200 with both their PAYE and the accounts office references to hand.

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