Industry jargon

Benefit in Kind

Also called: BIK, company car tax Benefit in Kind is the UK tax treatment applied when an employer provides a company car that is available for private use. The taxable amount depends on the car's list price and the appropriate percentage set for its emissions and, for some low-emission cars, electric range. For the 2026/27 tax year, the appropriate percentage for a zero-emission company car is 4%. Rates are scheduled to change over time, so the current percentage should always be dated. BIK is a tax rule rather than an EV grant. Its historically lower percentage for zero-emission cars has been one reason electric company cars can have lower taxable benefit than many combustion vehicles.