In line with the new tax year, effective April 6th 2015, the flat rate for vehicle and fuel on which BIK taxation is calculated has increased marginally.
The taxation on private use for vans is based on a flat rate which is taxable – the actual cost of the vehicle does not apply.
| Taxable cost for tax year | 2014 / 15 | 2015/16 |
| Vehicle | £3,090 | £3,150 |
| Private fuel use | £ 581 | £594 |
So for example a 20% tax payer would be charge £3,150 x 20% = £630 per annum for the vehicle alone.
Regarding National Insurance, this would only be charged to the employer for those vehicles being used privately – this would be charged at the current rate of 13.8% on the taxable amount ie £3,150 x 13.8%
