Benefit in Kind - Lease Car

steve1500

I have a lease car through work, the car comes taxed, insured (could do it for £400 a year myself!!) with servicing.

My employer contributes 40p per business mile to the overall lease and I make up the difference.

My employer would give me 40p a mile if I was using a privately ownded car.

Ran all the figures from P11D through HMRC Car benefit calculator which says I should't pay any tax.

Phoned Revenue up who said the calculator was wrong & I should be paying tax?

My question is, since the contribution from my employer to the overall cost of the car is the same as if they were paying me for using a privately owned car what is the benefit in kind

Caz3121

who is paying for the lease?

silvercar

My question is, since the contribution from my employer to the overall cost of the car is the same as if they were paying me for using a privately owned car what is the benefit in kind

This way you get to drive a relatively new car, if they paid you a mileage rate, you wouldn't have the benefit of the decent car unless you funded it yourself, you wouldn't have access to their company leasing rates.

Your getting the benefit of a company car, even if you contribute to it. If you don't think it is worth the the tax, then the answer is to decline the car and keep the company mileage contribution.

ILW

If the company are paying the lease, it will be taxed as a company car.

CKhalvashi

I tend to find that there is little point in a company car unless you’re going to have something small. It’s always worth politely asking an employer for a small car allowance + 45p/mi instead of a car, and many (including myself) would politely say yes. Be aware that they may put restrictions on this, however (any driver-owned car on our fleet has to be under 5 years old, for example, as it’s reasonable for us in our line of work. I do have a company car, which gets passed onto our fleet after about 6 months)

If you pay the lease and insurance, it’s similar to running your own car.

CK

steve1500

Thanks - wish I had gone to a local dealership for the car and done it all myself.

Paying £450 extra in insurance, AA membership which we already have, then the tax on top of that for a standard Astra!!!