Company Car / BIK
Discussion
Eric Mc said:
How are they supplying you with a car if you are paying 100% of its cost?
Is the car registered with the employer or you?
Is the lease agreement in your name or the employer's?
Car would be leased to the company and lease agreement in company's name (hence company would have to insure it)Is the car registered with the employer or you?
Is the lease agreement in your name or the employer's?
I would reimburse company the monthly lease cost
Any BIK?
The normal rule is that a BIK is calculated on the annual value of the benefit LESS any contributions made by the employee.
With cars, the "Annual Value" is based on a percentage of the List Price of the Vehicle when new including the List Price of any accessories. The a percentage is applied to the List Price based on the CO2 emissions rating for that specific vehicle.
Any BIK you would be liable for would be the figure that results from these calculations less whatever you have contributed to the employer.
You need to have someone sit down with you and do the calculations. Your employer should not suggest such a scheme to you without taking the time to calculate the tax cost that it will generate and the impact it will have on your monthly salary.
On a slightly separate note, will your employer be divulging to you the ACTUAL leasing costs they are paying to the lease company or are they just giving you a figure that you have to pay without any confirmation that the amount equates to the actual lease cost?
With cars, the "Annual Value" is based on a percentage of the List Price of the Vehicle when new including the List Price of any accessories. The a percentage is applied to the List Price based on the CO2 emissions rating for that specific vehicle.
Any BIK you would be liable for would be the figure that results from these calculations less whatever you have contributed to the employer.
You need to have someone sit down with you and do the calculations. Your employer should not suggest such a scheme to you without taking the time to calculate the tax cost that it will generate and the impact it will have on your monthly salary.
On a slightly separate note, will your employer be divulging to you the ACTUAL leasing costs they are paying to the lease company or are they just giving you a figure that you have to pay without any confirmation that the amount equates to the actual lease cost?
Edited by Eric Mc on Wednesday 2nd September 10:14
Eric Mc said:
The normal rule is that a BIK is calculated on the annual value of the benefit LESS any contributions made by the employee.
With cars, the "Annual Value" is based on a percentage of the List Price of the Vehicle when new including the List Price of any accessories. The a percentage is applied to the List Price based on the CO2 emissions rating for that specific vehicle.
Any BIK you would be liable for would be the figure that results from these calculations less whatever you have contributed to the employer.
You need to have someone sit down with you and do the calculations. Your employer should not suggest such a scheme to you without taking the time to calculate the tax cost that it will generate and the impact it will have on your monthly salary.
Thanks. I'll work it out.With cars, the "Annual Value" is based on a percentage of the List Price of the Vehicle when new including the List Price of any accessories. The a percentage is applied to the List Price based on the CO2 emissions rating for that specific vehicle.
Any BIK you would be liable for would be the figure that results from these calculations less whatever you have contributed to the employer.
You need to have someone sit down with you and do the calculations. Your employer should not suggest such a scheme to you without taking the time to calculate the tax cost that it will generate and the impact it will have on your monthly salary.
Make sure you put the absolute EXACT version of the car into the calculations. They are very, very specific.
You should also put into the calculations of any extra accessories that have been added to the car, such as leather upholstery, roof racks, tow bars etc etc.
Some more detail here -
http://www.busseyvehicleleasing.co.uk/benefit-in-k...
You should also put into the calculations of any extra accessories that have been added to the car, such as leather upholstery, roof racks, tow bars etc etc.
Some more detail here -
http://www.busseyvehicleleasing.co.uk/benefit-in-k...
Eric Mc said:
Make sure you put the absolute EXACT version of the car into the calculations. They are very, very specific.
You should also put into the calculations of any extra accessories that have been added to the car, such as leather upholstery, roof racks, tow bars etc etc.
Some more detail here -
http://www.busseyvehicleleasing.co.uk/benefit-in-k...
I will. Many thanks for your help.You should also put into the calculations of any extra accessories that have been added to the car, such as leather upholstery, roof racks, tow bars etc etc.
Some more detail here -
http://www.busseyvehicleleasing.co.uk/benefit-in-k...
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