Another Company car tax question....

[MrC986]

SWMBO has a new job (at last) and has a useful car allowance to play with. Is the BIK for a new company car based on the manufacturers list price or on the actual price paid for the car I.e after a possible substantial discount has been negotiated? Thanks

Edited to correct the fact the BIK query was on the new car not the allowance

Edited by MrC986 on Saturday 9th May 23:36

[anonymous-user]

From the HMRC calculator

http://cccfcalculator.hmrc.gov.uk/CCF0.aspx

"List price of car (including VAT and accessories)

For the purposes of this calculator the 'list price of the car' is the total of

the UK list price of the car on the day before the date of first registration, including VAT, car tax (where appropriate) and delivery charges, plus
the list price of any optional accessories with the car when it was first made available, plus
the price of any accessories added to the car after it was first made available (if they were added after 31 July 1993 and had a list price of £100 or more)

More detailed information about the list price of a car is given in Booklet 480 Expenses and Benefits - A tax guide (PDF, 333K) "

Edited by anonymous-user on Saturday 9th May 12:10

[Eric Mc]

A "Car Allowance" is just additional wages and is taxed and NI'd accordingly.

Does your Mrs actually have a company car or just a car allowance?

[MrC986]

JPJPJP - I was hoping you wouldn't confirm what I suspected.

Eric Mc - it will definitely be a company car as we have a temporary one on the drive.

Thanks both

[Eric Mc]

So your use of the term "car allowance" in your initial question did not actually refer to a "Car Allowance"?