A guide to benefit-in-kind (BIK) for company cars has been published by recruitment specialists Contract People. The information booklet assists employees and employers in determining how much a company car and BIK will cost in individual tax.

It includes calculation tables showing deductions that appear on Tax Free Allowance Certificates and a person's actual loss of earnings. BIK rates are calculated for a range of car prices from £12,000 to £28,000.

Contract People's Mr Niall Benson says: "Not many people clearly understand how much BIK they are going to pay on their car. This guide shows them the amount of BIK for their mileage and car value and how much it costs them according to their tax bracket." In the past few years, there has been significant growth in the numbers of company cars on the road. While a car may seem like a good perk to have, it can end up costing you money, he said.

The second edition of this free guide is available from Contract People at (01) 450 8881.