About SchemeWatch Video
Get a comprehensive car benefit package with Tusker!
Like Cycle to Work and Childcare Voucher schemes, you can offset some of your salary in exchange for a brand new car. It’s the new way to drive!
Simply choose your car to meet your needs, and let us take care of everything for you. You'll be updated every step of the way.
With every type of car available, from high performance cars, to the latest in electric vehicles and hybrids, we have something to suit everyone.
Each of our cars comes complete with insurance, servicing, maintenance and repairs, road tax and breakdown assistance included. All you need to do is add fuel/electricity and top up any vehicle fluids listed in your vehicle handbook*. When you come to return your car, you simply hand it back subject to any excess mileage or vehicle damage costs. Our dedicated Employee Engagement Team can help you with choosing the best car for your needs.
*You’ll also need to pay any fines you incur.
Driving a brand new car for the first time is sure to put a smile on your face.
We have thousands of happy drivers across the UK. Click on the videos below to meet some of them.
When organisations provide a car as a benefit to their employees HMRC class it as a Benefit in Kind (BiK) and as a result, you will need to pay company car tax.
How is company car tax calculated?
All taxable benefits have to be valued so HMRC can determine the correct amount of tax to be charged. Some employee benefits will have a specific value but with a car, the tax is based on the ‘use’ of the car so is calculated differently to other benefits.
For electric cars, there is zero Benefit in Kind tax to pay until April 2021, then it will be 1%, rising 1% each year until 2023. For other cars, Ultra Low Emission Vehicles (ULEVs), which are cars with CO2 emissions of 75g/km and below, you will pay tax on the Benefit in Kind value. This value is determined by the cars P11D value (list price, including extras and VAT, but without the first-year registration fee and vehicle tax) and then multiplied by the BiK rate which is based on the CO2 emissions and fuel type. This figure is then multiplied by your tax rate (e.g. 20%, 40% or 45%) to calculate the annual amount of company car tax to be paid. For cars that are pure electric, you won't pay any Benefit in Kind tax until April 2021, when the BiK rate will be 1%.
For cars with CO2 emissions above 75g/km, the taxable benefit is determined by the higher value of either your income tax saving on the gross salary sacrifice amount or the Benefit in Kind value explained above.
Where can I see the BiK value on the system?
Our online quotation system will automatically calculate the correct BiK value of the car you've chosen based upon the CO2 emissions, additional options, fuel type, P11D value and applicable tax rate according to the salary you've entered in the system. It will also take into account whether or not the car is electric.
We’ll also display the ‘Monthly Net Amount’ (which is the impact on your take home salary) for the next three years as the tax rates charged by HMRC increase each year as shown in the table on the next page.
You can visit the online system to view quotations, or if you have already had your car delivered, you can still view your car details once you’ve logged in to the system.
How do HMRC receive company car tax?
There are two main ways of paying company car tax and it’s important you check with your employer as to which will apply as this will affect whether you need to contact HMRC to advise them about your car
Deduction (tax) at source – this means it’s deducted directly from your monthly salary by your employer and you won’t need to notify HMRC.
Via PAYE coding notice – HMRC will collect your company car tax by issuing you with an amended PAYE Coding Notice, which means that the tax generated by the Benefit in Kind will reduce your personal tax free allowance.
When you receive your new PAYE coding notice, please note that it will detail the annual BiK amount before your personal tax rate is applied.
Notifying HMRC about your car
If your employer doesn’t deduct at source then HMRC need to be notified that you have this employee benefit. Most employers will contact HMRC with this information via the P46 (Car) form, but you should confirm this with your HR department as it is the employee’s responsibility to ensure HMRC are informed of any changes. If the tax is not collected via your tax code for the year the benefit is received, it could mean an underpayment of tax, which will be due the following tax year.
When contacting HMRC about your car, you may also be asked if you’re making any personal contribution towards your vehicle. As HMRC view salary sacrifice as a reduction in salary and not a personal contribution, you’ll need to answer ‘no’ to this question to ensure you are charged correctly.
Company car tax calculator
We have already done the maths for you but below is how it’s calculated:
(P11D Value) x (CO2 tax band percentage) x (income tax band ) / 12
Call us: 0333 400 3030
If you would like help placing an order or you are an existing driver.