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BIK and Company Cars

Tete_du_Pain Posts: 4 Newbie

8 August 2018 at 12:19PM in Motoring

Hi all,

I get a company car allowance or lease allowance with work. My lease allowance is £470 per month, which is great. I know that the car I choose is given a BIK %, which is then applied to the value of the car and then this is removed from my tax free allowance annually.

My question is this... I am also given the option to go above my allowance and get a better car. How does this work with BIK? I.e. if I paid an additional £100 per month to get a whizzy german exec machine, the list price would be higher, but I am paying a portion of that list price myself, so in my mind shouldn't be liable for the full BIK % applied to the full list price. Is that correct?

Not sure how this works out so I need someone who understands tax to help me!

Thanks in advance,

Alex.

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BIK and Company Cars

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