Does this count as a company car?
Discussion
One of our employees has decided to take the cash instead of a car. Because of his credit rating, he's unable to get credit from the car finance company. If the company's name appeared on the finance papers and the money was collected from the company but the company then deducted the same amount from the employees pay each month after tax, would this be treated as a company car?
It is a company car and should be returned as such on the annual P11d (and initially notified to the Revenue on the P46 (Car)). However, the impact of the BIK charge on the employee would be mitigated by the capital contribution being made by the employee i.e the capital cost of the car which is being met in full (eventually) by the employee.
Check the details out with your accountant.
The problem is that the car will be legally owned by his employer - and therefore the employer is providing the car. This automatically triggers the BIK.
BIKs can be reduced by the fact that the employee is making a personal contribution to purchasing the asset, which this chap is.
The problem is that the car will be legally owned by his employer - and therefore the employer is providing the car. This automatically triggers the BIK.
BIKs can be reduced by the fact that the employee is making a personal contribution to purchasing the asset, which this chap is.
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