Hand me down company car- BIK question
Discussion
Afternoon all,
My wife has accepted a job that includes a company car allowance, they use a lease company who say they can get any car on the uk market. When she enquired about the car they said they will check what they have on fleet, only one car is available and is used. How is bik calculated on this? Is it calculated on 2019 rates or on 2022 rates. The car in question is diesel and has emissions of 148g/km so 2022 rates would be very expensive 37% if I’m correct.
She can’t order a car until she starts so might have to accept this car until whatever she orders arrives. Just trying to understand what it will cost really.
Thanks
My wife has accepted a job that includes a company car allowance, they use a lease company who say they can get any car on the uk market. When she enquired about the car they said they will check what they have on fleet, only one car is available and is used. How is bik calculated on this? Is it calculated on 2019 rates or on 2022 rates. The car in question is diesel and has emissions of 148g/km so 2022 rates would be very expensive 37% if I’m correct.
She can’t order a car until she starts so might have to accept this car until whatever she orders arrives. Just trying to understand what it will cost really.
Thanks
Yes, a car is a car is a car for the BIK rules. But, of course, there's no charge at all so long as the car is never used for private purposes. It comes down to a question of how much use you can get out of it and whether there are any realistic alternatives. It's never worth falling out with your employer over a car.
IJWS15 said:
P11d and CO2 figures for when car was new, tax rates for current year.
Can she take it as a car allowance rather than a car?
Thank you,Can she take it as a car allowance rather than a car?
She can, but the extra on her wage will push her into 40% tax on that amount, so it won’t really cover a car.. the idea for us was to go electric with her allowance through the company and pay next to no BIK
Panamax said:
Yes, a car is a car is a car for the BIK rules. But, of course, there's no charge at all so long as the car is never used for private purposes. It comes down to a question of how much use you can get out of it and whether there are any realistic alternatives. It's never worth falling out with your employer over a car.
Thanks, the car will be used for private and work use, we are aiming to sell our current car and go electric to save both on car and fuel costs..Turbo-Dan said:
Thank you,
She can, but the extra on her wage will push her into 40% tax on that amount, so it won’t really cover a car.. the idea for us was to go electric with her allowance through the company and pay next to no BIK
Can you juggle what each of you pays into pension to stay below the 40%?She can, but the extra on her wage will push her into 40% tax on that amount, so it won’t really cover a car.. the idea for us was to go electric with her allowance through the company and pay next to no BIK
IJWS15 said:
Turbo-Dan said:
Thank you,
She can, but the extra on her wage will push her into 40% tax on that amount, so it won’t really cover a car.. the idea for us was to go electric with her allowance through the company and pay next to no BIK
Can you juggle what each of you pays into pension to stay below the 40%?She can, but the extra on her wage will push her into 40% tax on that amount, so it won’t really cover a car.. the idea for us was to go electric with her allowance through the company and pay next to no BIK
Here is a screenshot from comcar.
Exact tax depends on when the car was registered and which gearbox etc, but it seems to be about £1,500 pa on 20% tax and £3,000 pa on 40% tax.
Edit: your opening post says it is diesel but a tfsi is petrol.
The diesel is a lot more expensive:
Exact tax depends on when the car was registered and which gearbox etc, but it seems to be about £1,500 pa on 20% tax and £3,000 pa on 40% tax.
Edit: your opening post says it is diesel but a tfsi is petrol.
The diesel is a lot more expensive:
Edited by Scrump on Thursday 17th March 17:45
Scrump said:
Here is a screenshot from comcar.
Exact tax depends on when the car was registered and which gearbox etc, but it seems to be about £1,500 pa on 20% tax and £3,000 pa on 40% tax.
Thank you very much! Seems I was looking at something wrong. It was registered March 2019 and is an auto.Exact tax depends on when the car was registered and which gearbox etc, but it seems to be about £1,500 pa on 20% tax and £3,000 pa on 40% tax.
Edit- I typed the reg in incorrectly first time and it came back as a diesel.. my mistake apologies
Scrump said:
Turbo-Dan said:
Thank you very much! Seems I was looking at something wrong. It was registered March 2019 and is an auto.
See the petrol/diesel edit to my earlier post.Now what to get? I quite like the polestar 2, tesla seems too obvious and having looked around a few I’m not impressed with the overall quality of them and don’t really like much of the interior, my wife will obviously get the choice in the end but is asking me what I would like too considering it’ll replace our main car.
Turbo-Dan said:
I’m not sure actually, it’s only her wage that is relevant.
I am assuming that you work as well and neither is on a final salary scheme. Think outside the box, is it worth dropping your pension contributions and increasing hers to keep her under the 40%. Overall the same pension contributions between you but less tax paid.Turbo-Dan said:
Scrump said:
The BIK may push your wife into the 40% tax bracket.
Now I am confused! BIK increases your top line pay? If she takes the allowance then it will be taxed as normal income, with any amount over the lower tax threshold being taxed at 40%.
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