Company cars again! Low pay + Nice car
Discussion
Nothing wrong with her having acompany car - as long as the company deducts the correct tax and NI.
Obviously, you do need to be aware that the details given to the Revenue on the P46 (Car) and P11d regarding the details of the car and the user of the car must be correct. To state incorrect information on these forms is a criminal offence.
Obviously, you do need to be aware that the details given to the Revenue on the P46 (Car) and P11d regarding the details of the car and the user of the car must be correct. To state incorrect information on these forms is a criminal offence.
I'll have a word with my accountant and see what she says.
Don't want be seen to be trying to pull a fast one, especially after reading about Mr Linaker - 'forgot' to declare £220K, should have paid 90K tax - got 90K bill, 2 years in prison! Seems odd especially considering he was worth quite a few bob anyway!
Don't want be seen to be trying to pull a fast one, especially after reading about Mr Linaker - 'forgot' to declare £220K, should have paid 90K tax - got 90K bill, 2 years in prison! Seems odd especially considering he was worth quite a few bob anyway!
There is probably a lot more to the Linneker story than that. He may have forgot but the Revenue must also have had difficulty in getting him to admit that he made a mistake. I would assume he denied all the charges made against him and then didn't co-operate with the authorities in resolving the situation.
Tax underpayments are usually dealth with by
a) paying the arrears
b) paying any related penalties (which can be reduced to Zero if the tax payer is co-operative)
c) paying interest on the late payments of tax
Unpaid tax rarely, if ever, lead to criminal convictions and gaol sentences.
Tax underpayments are usually dealth with by
a) paying the arrears
b) paying any related penalties (which can be reduced to Zero if the tax payer is co-operative)
c) paying interest on the late payments of tax
Unpaid tax rarely, if ever, lead to criminal convictions and gaol sentences.
Hi all,
On the same subject then, lets say an employee in your company is on a low salry (other implications accepted) and you bought them say a Gallardo from company funds as a company car.
The way I understand it is that isn't it the value of the car at new which is what the taxable value for what the benefit is, and that is taken from your salary. So, what if you're salary is so low - do you then avoid the tax, yet still have the benefit of having 90k+ missing from your bottom line and thus not subject for Coperation Tax?
I'm sure this can't be the case or we'd all be doing it....
Just curious.... I don't have 90k+ sitting around in my business account.... yet.
Cheers,
JC
On the same subject then, lets say an employee in your company is on a low salry (other implications accepted) and you bought them say a Gallardo from company funds as a company car.
The way I understand it is that isn't it the value of the car at new which is what the taxable value for what the benefit is, and that is taken from your salary. So, what if you're salary is so low - do you then avoid the tax, yet still have the benefit of having 90k+ missing from your bottom line and thus not subject for Coperation Tax?
I'm sure this can't be the case or we'd all be doing it....
Just curious.... I don't have 90k+ sitting around in my business account.... yet.
Cheers,
JC
The value of the car used to compute the Annual Benefit in Kind ammount is the Manufacturer's List Price for the vehicle - including the list price of accessories and extras fitted. A percentage, based on the CO2 emission levels of the vehicle is applied to the list price to arrive at the annual BIK value.
The BIK value is then deducted from the individual's PAYE Notice of Coding. He is taxed therefore on whatever his normal salary is LESS the reduced amount of coding left after taking off the BIK. In some cases, car related BIKs are enough to turn the PAYE Coding from a tax deductable allowance into additional income which is ADDED to the annual salary. If the salary and coding combined throws up a value of £8,500 or more, a P11d will need to be completed for the employee.
The BIK value is then deducted from the individual's PAYE Notice of Coding. He is taxed therefore on whatever his normal salary is LESS the reduced amount of coding left after taking off the BIK. In some cases, car related BIKs are enough to turn the PAYE Coding from a tax deductable allowance into additional income which is ADDED to the annual salary. If the salary and coding combined throws up a value of £8,500 or more, a P11d will need to be completed for the employee.
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