Budget 2009 - devil in the details...

[bertie]

I have just noticed this nugget in the recent budget which clearly has significant implications for anyone like myself who has a company car....

Budget says said:

Changes will be made to the company car tax regime from 2011-12. In particular, the lower threshold for carbon dioxide emissions will decrease from 130 grams per kilometre (g/km) to 125g/km and the £80,000 price cap that applies when working out the cash equivalent of the car benefit will be abolished.

Cue some more inventive schemes from you accountants.

Of course it might just be me being slow and everyone else has noticed this already.

[AndrewD]

There was a budget recently?

[bertie]

So what accounting method of dealing with this situation do people use?

[kryten22uk]

Isnt that a bad thing? Not looked into it but does it mean that the BIK is no longer capped and hence if you buy a Ferrari (subtly keeps the thread on topic! ) through a company then your BIK tax liability will be much higher?

Edited by kryten22uk on Tuesday 28th April 12:16

[bertie]

Exactly my point.

If for instance you had say a Lambo with a list at say £160k, your BIK is now going to double to £56k costing you £22,400 in cash per year!!!

Hence why I asked what methods people were likely to use to get round this.

[UFO 2 NOB]

bertie said:

Exactly my point.

If for instance you had say a Lambo with a list at say £160k, your BIK is now going to double to £56k costing you £22,400 in cash per year!!!

Hence why I asked what methods people were likely to use to get round this.

Buy the car yopurself from the 22k per year you will save but not having it as a company car,Earnst and Young would have charged you £1500 for that advice.Don't forget the new 50p tax rate so it could be even more!!!!! THIS GOVERMENT MUST GO.