BIK. How much?

[Sexual Chocolate]

Bit of a cheekly request but any kind accountant want to work out the BIK on a 41K car via lease hire at a cost of £569 per month with a co2 of 158g/km CO2.

[Mandat]

For the current financial year the BIK rates will be 22% and 25 % for petrol and diesel respectively.

[bobbylondonuk]

Mandat said:

For the current financial year the BIK rates will be 22% and 25 % for petrol and diesel respectively.

of the list price. And then your normal tax rates on that BIK figure. your lease price is not relevant.

[Sexual Chocolate]

So by my reckoning that is around about £450 per month?

[shep1001]

Sexual Chocolate said:

So by my reckoning that is around about £450 per month?

25% of £41000 = £10250. Assume 40% tax = BIK £4100/12 = £341/month.


Assuming you make no contribution to the car like for extras or buying up into a higher car grade if your company allow it

[sumo69]

Bear in mind that the co2 bands do change every year or two so the tax charge may increase in the future.

David

[simontrent]

Mandat said:

For the current financial year the BIK rates will be 22% and 25 % for petrol and diesel respectively.

I thought the % remained the same based on the CO2 rating. The result may be the same as Petrol has a higher CO2, but not sure how you arrive at your numbers.

[shep1001]

simontrent said:

I thought the % remained the same based on the CO2 rating. The result may be the same as Petrol has a higher CO2, but not sure how you arrive at your numbers.

If only. As cars get greener the gubberment get poorer as the lower the Co2 value the lower the tax liability. So to keep the money rolling in they move the band thresholds down every 12 months thus pushing up the tax liability.


See linky:

http://www.wessexvc.co.uk/taxation.html