Company car tax and fuel benefit - Threshold?

jennifernil

If you are working 12-14 hours per week, would you not need to be paid the minimum wage for those hours for HMRC to believe this plan? After all, is a "benefit" not supposed to be exactly that....a benefit over and above your wages?

MrPez

Ah, thats an interesting one, hadn't thought of that... I'm salary though, not hourly, does that make a difference?

System

It makes no difference. Your hourly rate will be calculated on the hours that you are contracted to work I.E 12-14 per week.
For a 12 hour week that would be £71 and £3400 (ish) per year (48 week year)

BIK can not be included as part of the NMW

MrRedundant

Of course your hardly going to report yourself are you?

I'm not convinced exactly why you are so keen on this plan though and suspect one of the other tax rules about related parties would catch it.

MrPez

The more I find out about it, the less keen I am... I just thought it might be nice to save £1500 or so in income tax if the rules allow it! Might just buy it the old fashioned way!