Lease cars and company car tax

[Gooby]

My wife is about to sign the lease car agreement. The lease agreement is through the company she works for. Will we have to pay any company car tax on this type of deal?

[einstein75]

She'll have to pay BIK on a company car which is calculated using a scale based on CO2 emmissions and the P11D (tax list price) of the vehicle.

[Gooby]

Is it a company car with a lease agreement?

[JQ]

Who's paying for the lease, your wife or the company? If she leaves is she responsible fo the car?

[soxboy]

Is it a lease car as a company car, or is it a lease deal arranged through her company at a 'competitive' rate due to their collective buying powers?

I say 'competitive' as having looked at this through my firm they were far higher than going direct to other brokers.

[Gooby]

JQ said:

Who's paying for the lease, your wife or the company? If she leaves is she responsible fo the car?

My wife is - the car is "administered" by the company and the company take the payments for the car directly from her wage but if she leaves she is responsible for the car

[Gooby]

soxboy said:

Is it a lease car as a company car, or is it a lease deal arranged through her company at a 'competitive' rate due to their collective buying powers?

I say 'competitive' as having looked at this through my firm they were far higher than going direct to other brokers.

it is a lease deal arranged through her company at a 'competitive' rate.....

[5lab]

from what you've said, I think she'll just be taxed normally on the income, ie have the lease cost taken out after tax.

[CaptainSlow]

The lease rental will be deducted from her salary gross, she will then pay normal car BIK tax.

[Gooby]

CaptainSlow said:

The lease rental will be deducted from her salary gross, she will then pay normal car BIK tax.

What is BIK tax and how do I assess how much I will pay?

[CaptainSlow]

Gooby said:

CaptainSlow said:

The lease rental will be deducted from her salary gross, she will then pay normal car BIK tax.

What is BIK tax and how do I assess how much I will pay?

What is the vehicle's CO2 figure, the list price (inc options), your tax rate and the lease rental?

[GBS2K]

Gooby said:

soxboy said:

Is it a lease car as a company car, or is it a lease deal arranged through her company at a 'competitive' rate due to their collective buying powers?

I say 'competitive' as having looked at this through my firm they were far higher than going direct to other brokers.

it is a lease deal arranged through her company at a 'competitive' rate.....

If her money is paying for the lease of a car, then normal tax on the pay is the only thing she'd pay.

If the company are leasing a car for her then it may be classed as a company car and she'd have to pay for a BIK

As you've said she's responsible for the car if she leaves then it seems like she is leasing the car, hence only paying income tax.

Sounds a bit dodgy though - you need to lease a car for your job and you've got to go to this company (so we get a kickback) but you can't get out of the agreement if you leave.

Edited by GBS2K on Tuesday 16th November 15:42