Company cars for poorly paid employees

[Gordon Brown]

Did I read that if an employee (non director) earns less than a certain amount, that the company car tax rules don't apply and no BIK is applied?

I was just thinking that I curently pay couriers to move stuff about but if I took on my retired father in law to do the daily local runs and gave him a car to do it in , woulld he/we cop for company car tax/BIK NI?

[smartie]

yes, but it's only £8500 (including the BIK) - doubt you'll have many takers!

[Eric Mc]

It's not even £8,500.

The regulations actually say "at a RATE of £8,500 per annum, including the value of the benefit". This means a person could earn £6,500 (including the value of the BIK) over a 9 month period and still be classified as a "higher paid employee" for BIK purposes.

[Gordon Brown]

Eric Mc said:

It's not even £8,500.

The regulations actually say "at a RATE of £8,500 per annum, including the value of the benefit". This means a person could earn £6,500 (including the value of the BIK) over a 9 month period and still be classified as a "higher paid employee" for BIK purposes.

We are talking about a few hours a day to run boxes around my 'outworkers' for which at the moment I just pay his petrol so probably not worth £250 a month.

[smartie]

So you're going to buy and run a car for him, and pay him a wage, for a couple of hours work a day?

[Gordon Brown]

smartie said:

So you're going to buy and run a car for him, and pay him a wage, for a couple of hours work a day?

C'est Famille.

[smartie]

Fairy Nuff