Unwanted Lease Car
Discussion
Company took a 4 year lease on a car for a new employee who left after a few months. The lease requires 95% of outstanding payments for early termination so no point sending it back. The lease company will only consider novation to another company.
No other employees will take the car as a company vehicle because of the high BIK.
The lease costs are not actually too bad.
If the company were to allow an employee to use the vehicle and invoiced them monthly outside of payroll for the same lease cost the company pay, plus VAT, does any BIK arise?
No other employees will take the car as a company vehicle because of the high BIK.
The lease costs are not actually too bad.
If the company were to allow an employee to use the vehicle and invoiced them monthly outside of payroll for the same lease cost the company pay, plus VAT, does any BIK arise?
How many company car drivers are in the company?
I ask because in my (limited) experience, in situations like this the car is allocated to whoever's car has the shortest remaining lease time left on it to minimise cost to the business.
The employee may not want the higher BIK, but that can be counter-acted either with a response of "Tough luck" or a pay increase to offset.
I ask because in my (limited) experience, in situations like this the car is allocated to whoever's car has the shortest remaining lease time left on it to minimise cost to the business.
The employee may not want the higher BIK, but that can be counter-acted either with a response of "Tough luck" or a pay increase to offset.
1 Re-allocate to the twunts who agreed to a four year lease on a high BIK car for a new employee unless said employee was on serious dough!
2 You have a new pool car that is "never" used for non-work purposes.
3. BIK is still due but offset by the payments from the employee. That would seem unlikely to benefit the dunce who takes it on.
2 You have a new pool car that is "never" used for non-work purposes.
3. BIK is still due but offset by the payments from the employee. That would seem unlikely to benefit the dunce who takes it on.
quinny100 said:
If the company were to allow an employee to use the vehicle and invoiced them monthly outside of payroll for the same lease cost the company pay, plus VAT, does any BIK arise?
I don't see why that wouldn't work - in a previous company we had to pay a contribution towards private use, and that was deducted from the BIK tax.We also had a issue where we got rid of a level of middle manager so had all their cars - typical was BMW530i and Jag S Class and even years ago the BIK was horrendous. We had to compensate lower grade employees to take them.
Gassing Station | Jobs & Employment Matters | Top of Page | What's New | My Stuff