Company car on minimum wage?

[LooneyTunes]

tali1 said:

All cars no matter how expensive are offered at 40% and 22% - at what point do HMRC "get suspicious" of 22% ratepayer with expensive company car?
Is there a "guideline" Salary to company car new cost Multiple ? ie 50k salary = 25k company car?

Why would they be suspicious? All they care about is getting their money.

If the car were expensive enough the BIK would push the 22% taxpayer into 40% anyway...

[Hyper10]

Without being definitive, HMRC do have a policy on this and if I remember correctly, even if it didn't fall foul of taxation re BIK, they will question and win on the commercial reasoning, that is why give an employee who earns 8K and 200k car.
The avoidance measure relates to company owners giving related parties this benefit ( usually wife or girlfriend or boyfriend), then occasionally "borrowing" the car. I know from experience they don't like it and challenge it. 1st thing local compliance officer asks is about company cars and who has them and what type of car, whether they know already is probably not the point

[tali1]

LooneyTunes said:

tali1 said:

All cars no matter how expensive are offered at 40% and 22% - at what point do HMRC "get suspicious" of 22% ratepayer with expensive company car?
Is there a "guideline" Salary to company car new cost Multiple ? ie 50k salary = 25k company car?

Why would they be suspicious? All they care about is getting their money.

If the car were expensive enough the BIK would push the 22% taxpayer into 40% anyway...

But what is that rate of "expensive enough" car ?
And why do guides still list the 22% rate -if it becomes 40%?