Company Car BIK - IVA

steone

Hello Peeps
New here so please be gentle!

Recently went into an IVA (Sept 10) and am Company Director. Talking to my accountant today about Salary, Divs and Benefit in Kind for my Company Car....and had a sudden worrying thought.

How is the Benefit in Kind treated in an IVA? Is it treated as actual earned income....or is it effectively ignored as it is not a cash element of earnings?

Advice gratefully received
Ste

IF

Hi Ste and welcome, to get more replies I would post here too:-

IVA - Individual Voluntary Arrangement board Click here

Best wishes
If...x

nearlyrich

Moved to the IVA Board;)

Charco_2

I would have to say it would be ignored, it obviously has a knock on effect for the benefit of your IVA but it's not measurable and certainly not something for you to worry about.

The only affect it will have is that maybe certain expenses of the car wont go on your IVA I&E because they will already be included on your self employed accounts.

steone

Thanks Charco

I had hoped that was the way it would be looked at.

You are right, apart from fuel, I have no car expenses included in my I & E allocations.

Did cause me a moment of panic though!