Double Cab Pick Up BIK

[expensivegarms]

Apologies if this has been covered elsewhere!

Whilst I understand that BIK on double cab pick ups is set to increase quite substantially from what it is now, what is the position if BIK is based at a higher rate already due to company having a cash scheme?

For context, company offers a cash scheme that is around 9k a year for a 4x4 allowance (required for some job roles). BIK for a pick up is currently around 3.6k a year, but because the company offers a cash scheme, it would appear that we get taxed on the amount we would get, were we to have a company car, so around 9k.

Whilst I'm lucky enough to have my truck for another 4 years before potentially needing to change, am I missing something and this recent change might not make any difference at all to the BIK we already pay?

Or am I completely wide of the mark?

[softtop]

if you get cash already, you have your own vehicle, there's no BIK to pay if you own it directly? What am I missing?

Otherwise, the new rules take affect once you replace the vehicle. That's my take. If you get a new truck before Aril 2025, then you are ok and stay on the old rules until your lease expires.

to be clear, you get an allowance, is this in your PAYE?

[expensivegarms]

Apologies, that was written rather badly! Double cab pick up truck is available on the company car scheme, but a cash allowance is also offered. The way I understand it is that because the cash is offered, those who have company cars pay BIK on the same value as the cash allowance, so BIK on 9K a year as opposed to 3.6K if that makes sense!

[softtop]

expensivegarms said:

Apologies, that was written rather badly! Double cab pick up truck is available on the company car scheme, but a cash allowance is also offered. The way I understand it is that because the cash is offered, those who have company cars pay BIK on the same value as the cash allowance, so BIK on 9K a year as opposed to 3.6K if that makes sense!

Not really sure what you are saying.

If you have a company vehicle, then you pay BIK. If you are given £9,000 a year, you will get taxed as it s part of your salary. Whatever deal you do is done as a personal car. There's no BIK to pay, it's like any other private car on the road. This is why sometimes it is better to have your own car. What you pay in salary tax is then compared to what you would pay in BIK to see which deal is better for you. There must be loads of calculators out there.

As for what the company car owners pay, they pay based on the value and Co2 from memory, the company can't make that decision, they maybe have worked out what your cash is worth and tried to make it the same financial deal overall regardless of how you go.

[Countdown]

Based on what you’ve posted you’d either pay

£3600 a year OR
20%/40% of £9k a year if you took the cash option

BIK for cars varies depending on retail price and CO2. It’s not always going to be &3600

You can’t choose to pay tax based on the allowance if you have a car provided for you or vice versa