How do i stand on the company car?

Beatle_Ray

Hello,

It looks as though the redundancy process is going to start tomorrow, or at least announced, only a small firm so its hard to keep secrets, the expectation is that everyone will get made redundant and the firm will start a slow process of shutting down, I have already been told that I can stay on a s a consultant on the biz I work on, so quick question, I have a company car which is owned outright by the company, the firm pays for the petrol, insurance and running costs, so in theory I would have to hand the car back, its worth approx. £3K I think, would there be tax implications if they want to hand the car over to me for a small nominal fee which it shows on the books for? I don't think they want the hassle of taking it down to auction or selling privately

Comms69

Do you mean acquiring it? If so the implications for you would be against the benefit in kind element of your tax payments. But it shouldn't actually make much difference

Beatle_Ray

Thanks for the reply, yes acquiring it, can you explain how it works re the tax please, I'm a 20% take payer

Comms69

Beatle_Ray wrote: »

Thanks for the reply, yes acquiring it, can you explain how it works re the tax please, I'm a 20% take payer

TBH it depends if your company have been doing the tax right, but I don't want to confuse the situation now - you aren't going to be there long enough to actually make any difference now.


If the company want to sell you the car that's up to them. The price is also up them.


You wont owe tax on it.