Car Allowance and BIK

boroboy1234

Hi

Need some help and advice.

I receive a car allowance through work and use it to lease a car through a lease company at work. (Lex) . I also pay BIK through my tax code and have two questions , a) is this right in essence I feel I have the worst of both worlds, b) in terms of BIK does this mean you start paying the 20% and 40% rate earlier?

Also looking for advice as my lease is coming to an end and I am looking to save a bit of money

Cheers

Rustypail

Either this is completely wrong or your company car scheme is more complicated. If you provide the car without assistance from the company, then it cannot be a company car, so no BIK is due. A car allowance is taxed as salary, and is largely up to you how it is spent.
Part b. The Car BIK is treated as the top slice of income so could be partly taxed at 20% and partly at 40% if it takes you over the threshold.
Look at comcar.co.uk for detailed calculations