Company Benefits & P11D

robcole86

Hi all,

I'm new to the forum, please inform me if I've put this in the incorrect place but it was the closest I could find.

Basically I have joined a company that works with a points benefits system. Eg. I get say 3000 benefit points per year. These can be spent on holiday, dental care and even an employee car ownership scheme.

I'm looking at a car, its value is a little under 20K for the P11D price....i've input this into whatcar and have got this result:

Honda Civic Hatchback 1.6 i-DTEC S 5dr£17,474 Target Price £18,755 Price
2015/2016
Percentage charge 16%
Benefit in kind £2,992
Tax payable at 20% £598
Tax payable at 40% £1,197* Calculations based on taxable value of £18,700 and CO2 emissions of 94g/km.

Ideally - the points the company gives me could help me with £150 per month towards the total payment of £280, with me contributing £130 of my own money each month. If i were to do this and go for a car of this value, can anyone offer any advice as to what this would do to my P11D and therefore my tax?

Kind confused regards,
Rob

Nicola_Ed

Hi - a couple of questions:-


Is your £130.00 contribution coming from net or gross pay?
Will you own the car at the end of the period?

robcole86

Hi,

Thanks for the quick replies! My personal contribution of £130 would be coming from my net pay and the car is classed as mine, as this is not a company car scheme, it is a employee car ownership scheme - i understand there is a balloon payment at the end of the agreement (making it much like PCP).

Thanks a lot
Rob

zygurat789

If the car is not a company car why do you think there will be a bik?
What happens if you points are only worth £50 next year?