Company Car BIK Tax Help

Beaniepop

Hoping someone is savvy enough on income tax to advise on my company car Bik

Basically took on a company car in November last year, my employer shows an additional monthly earning of C.£500 in my pay slip as car BIK. My tax code has also been reduced from the standard allowance down to 517L.

I keep looking over my payslips as in my head I'm paying double bubble on the car? If I am being paid more each month it seems to me that my employer is forcing me to pay the tax on the car straight from my wages so, there would be no need to adjust my tax code or, have I missed something that means the current set up is correct :think::think:

photome

BIK is worked out as a percentage of the list price plus a 4% surcharge for diesels and the co2 emmissions



from april my ford focus is 27% of the list price which works out to £6318 so my tax code is reduced by that amount




yours is very similar as £500 a month is £6000 a year so you would pay £100 a month tax on that assuming you are a basic rate taxpayer

unholyangel

If its being payrolled then you're correct, it shouldn't also be in your code (assuming its wholly payrolled and not just a ongoing monthly contribution).

Check with your employer if its wholly payrolled first and then go from there.

DoaM

My tax code is S1197LC ... S for Scotland, 1197 meaning £11,970 allowance. (I get £120 on top of the basic allowance due to job-based entitlement, being time-served). No idea what LC means.

My payslip shows £503 car BIK.

So if your payslip shows BIK and a reduced tax allowance then it does sound like they're double-dipping.

photome

i dontt understand the OPs point about..my employer shows an additional monthly earning of C.£500 in my pay slip as car BIK.


how does that work

Beaniepop

Photo me: this is exactly what I don't understand.

As a example my wage slip is laid out as below

EARNINGS
Salary £1500
Company car BIK £500
Pension -£40
Fuel -£150

Deductions
Tax
National insurance

So I read it as they are paying my extra as a BIK to give it a monetary value and as such I am paying more tax.

I really really don't understand