Additional tax if spouse drives company car for personal use

[Phunk]

Bit of a bizarre one this!

I've asked if I my other half is allowed to drive my company car, they say she can, however this will result in an additional tax deduction of about £20 a month.

I've done lots of Googling, yet I can't find anything about this?

I'm pretty sure that's not the case, especially as it's a Nissan Leaf?!

[Super Slo Mo]

That doesn't sound correct unless your car is entirely for business use, but then you wouldn't be able to commute in it or use it personally yourself.
Presumably you pay BIK tax on it already?

[Phunk]

I've just got the Leaf which is BIK exempt, however the Abarth I had before I was paying about £60/month BIK

The car is definitely for business and personal use.

[Nigel Worc's]

Are you sure it is tax and not a company charge ?

[Phunk]

Nigel Worc's said:

Are you sure it is tax and not a company charge ?

It was described specifically as a tax for my GF using it for personal use. Normally their would also be a £20/month charge for insurance, however she also works for the same company as me, so is already on the company insurance.

[Nigel Worc's]

Phunk said:

Nigel Worc's said:

Are you sure it is tax and not a company charge ?

It was described specifically as a tax for my GF using it for personal use. Normally their would also be a £20/month charge for insurance, however she also works for the same company as me, so is already on the company insurance.

I haven't had a company car for a few years now, so I'm very rusty.

I only know about you being taxed on the car & the fuel , I suspect anything/everything else is a charge by your company.

[Stegel]

Could it be a charge to prevent her being taxed due to BiK? We get charged £10 per month for free use of company mobile to prevent the taxman viewing it as a perk.

[don'tbesilly]

You might want to read the below link, in particular page 33, although it's far from clear as to whether further BIK can be applied to your spouse using a company car provided for you to carry out your job.

My wife can drive my company car as long as I inform the company and she is named on the companies insurance register of allowed drivers, I've never been told a further BIK charge would apply though



https://www.gov.uk/government/uploads/system/uploa...

[carl_w]

Stegel said:

Could it be a charge to prevent her being taxed due to BiK? We get charged £10 per month for free use of company mobile to prevent the taxman viewing it as a perk.

You're getting scammed then -- company-provided mobile phone hasn't attracted BIK for at least 10 years, assuming they only provide you with one.

[Stegel]

carl_w said:

Stegel said:

Could it be a charge to prevent her being taxed due to BiK? We get charged £10 per month for free use of company mobile to prevent the taxman viewing it as a perk.

You're getting scammed then -- company-provided mobile phone hasn't attracted BIK for at least 10 years, assuming they only provide you with one.

Me and 3,000 others - I'll check!

[oop north]

One mobile phone provided by employer - no benefit in kind - there was originally, but dropped years ago

No additional tax charge for wife / partner / spouse / dog / children driving it - never has been

Both the circumstances above are charges imposed by the employers and nothin to do with tax

[Jonwm]

My wife has driven mine for the last 5 years and it's no more than just me, 100% no additional bik

[BFG TERRANO]

15 years of company cars and I've never heard of this? All my company ask for is a copy of other half licence for insurance.

[Cpl nobby nobbs]

My company just require a copy of the wife's licence and that she be over 21 (that ship sailed a while ago) . No additional tax or any other costs.

If you want to use the company mobile for unlimited calls and Internet they charge £7 but that's the company charging nothing to do with tax.

[smileymikey]

I just gave them a copy of my wifes licence. Our company states that wife or spouse (provided they live at the same address) can drive the company vehicle

[anonymous-user]

Stegel said:

carl_w said:

Stegel said:

Could it be a charge to prevent her being taxed due to BiK? We get charged £10 per month for free use of company mobile to prevent the taxman viewing it as a perk.

You're getting scammed then -- company-provided mobile phone hasn't attracted BIK for at least 10 years, assuming they only provide you with one.

Me and 3,000 others - I'll check!

In case they want the HMRC details

for the phone http://www.hmrc.gov.uk/manuals/eimanual/eim21779.h... - no tax charge applies for a single phone provided for business & personal use

and the car http://www.hmrc.gov.uk/manuals/eimanual/EIM24015.h... - no additional calculation is made for spousal use


Sounds like a good employer scam if they are labelling them as tax charges to pull in over £400k a year from employees