Company Car Tax Query

pricey80

Hi. New to the forum and looking for some advice or ideally anyone who has experienced this. My company has offered me to come away from the normal Company Car scheme and in to a new scheme run by CBS (Car Benefit Solutions). This all sounds to good to be true and when you look at case studies, they are only by some of the country's (and the world's) largest organisations. The company I work for are nowhere near that size. To be offered the chance to go in to a much more expensive car and pay a fraction of the tax I'm used to is worrying me.

The concept as it's been sold to me is that my company sells the car to CBS and agree to buy it back in 3-6 months time at the same price. The cost of the lease/interest (or whatever it is I am paying) is taken from my wages - surely somewhere I am benefiting from something my company is organising?

Has anyone heard of this scheme or used it? This has been thoroughly looked at by my company, they are not in the habit of making quick decisions especially on things like this but I believe in "if it sounds too good to be true it probably is".

Many thanks for your time! :rotfl:

Gas_Powered_Toothbrush

If you're getting access to the leased car by reason of your employment, then you'll be taxed on it as if it was provided to you by your employer. You'll get credit for any payments you make towards the lease cost of the car.

Beenie

I don't know about that particular scheme but my husband's car is as described by you. Instead of paying a few hundred £££s in tax, he pays a lease fee to his employer (less than the tax) and as it's a lease and not a company car, the taxman gets nothing. He's been doing this years now. It's a well-established scheme.

tasticz

So if you lease a car from a company like lingcars in company name you don't need to pay any tax to government?

redmalc

This all sounds dodgy to me,i have driven a company car since the 80,s and my accountant as advised me about numerous different ways to reduce the tax payable,up to yet i have not managed to beat the Revenue.
If it works let me know.

rs65

pricey80 wrote: »

The concept as it's been sold to me is that my company sells the car to CBS and agree to buy it back in 3-6 months time at the same price.

That sounds more like your company is getting a short term loan against the cars. After 3-6 months you would have a normal company car again.

zygurat789

Here you are, have a good read and see what you make of it.

http://www.carbenefitsolutions.co.uk/all-employee-car-scheme.php

pricey80

Many thanks for all your replies : Surely by doing this scheme though I am benefiting from the company. For example; whilst it is seen a Credit Agreement (and explained as this to HMRC) they never credit checked me and there is no risk to me. That all remains with my company, surely if this is investigated in detail it's a clear attempt by me, and my company to avoid paying some tax? Am I worrying over nothing here or does anybody share this view? Many thanks again

zygurat789

pricey80 wrote: »

Many thanks for all your replies : Surely by doing this scheme though I am benefiting from the company. For example; whilst it is seen a Credit Agreement (and explained as this to HMRC) they never credit checked me and there is no risk to me. That all remains with my company, surely if this is investigated in detail it's a clear attempt by me, and my company to avoid paying some tax? Am I worrying over nothing here or does anybody share this view? Many thanks again

Nothing wrong with that, it's perfectly legal, now if you were trying to evade tax that would be a whole diferent ball game

comeandgo

Oh well, wont work for me, my mileage is more than double the 12k.