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Company Car - Employee Contributions Question
lordgaz
Posts: 102 Forumite
Hi All -
I am looking to get a much cheaper benefit in kind company car -
The figures for the new car on contract hire are much the same as my current car, but the boss is looking to make savings with my next car.
As the BIK will be £1750 instead of £6450, I am willing to look at making an offer to have the new car without maintenance on the contract hire, and pay for servicing and tyres myself, which would come to about £500 pa
Could I claim this amount in a self assessment as an "expense" not paid back by the employer? I am not sure if the £500 gets swallowed up, or if it is off-set or refundable?
Also, it is correct to think the employer National Insurance contribution will be less as the BIK figure is much smaller?
I am looking to get a much cheaper benefit in kind company car -
The figures for the new car on contract hire are much the same as my current car, but the boss is looking to make savings with my next car.
As the BIK will be £1750 instead of £6450, I am willing to look at making an offer to have the new car without maintenance on the contract hire, and pay for servicing and tyres myself, which would come to about £500 pa
Could I claim this amount in a self assessment as an "expense" not paid back by the employer? I am not sure if the £500 gets swallowed up, or if it is off-set or refundable?
Also, it is correct to think the employer National Insurance contribution will be less as the BIK figure is much smaller?
No reliance should be placed on the above.
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