Company Car Tax - Termination Payments

bencookman

I am leaving my present employer today, and have been notified of an early termination cost on my leased company car, equivalent to four months' lease costs plus the outstanding value of any accessories.

This I'm fine with, but I would appreciate any clarity you may be able to provide on the income tax treatment of this amount I'm paying...

1.
Should the deduction from my income for the charge be pre-tax or post-tax on this month's pay slip?

... or 2.
For my tax return at the end of the year, can I deduct this payment from the BIK value of the car itself?

... or 3.
Is there no tax benefit from this payment at all?


Thanks in advance

Any

Was the car leased by the employer or by you?
If it was by employer, why would YOU pay the termination? I've never heard of that .... Usually employers just give the car to someone else.