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Lease Car Tax
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Golding
Posts: 3 Newbie
in Cutting tax
I have a quote for leasing a car via my employer. I have to pay a monthly charge for this. I have been told that I will be taxed on the benefit in kind (BIK). I have researched the tax liability which appears to tax me based on the P11d value of the car. None of the calculators i have used take any account of the monthly lease payments that I will make as lease payments are specifically excluded from capital contributions and private use payments. Should i be taxed on the BIK or can I claim a tax deduction via a self assessment for my lease payments as a business expense (or similar)?
0
Comments
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More details needed on the exact type of lease arrangement you will have. Salary sacrifice maybe ?0
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Is the wages deduction before tax or after tax, i.e. is it off your gross pay or your net pay?0
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It’s not a salary sacrifice scheme, just basic contract hire. I work for a local authority so no perks! Hire includes vehicle excise duty, full maintenance, no quibble tyres and AA recovery. Rental quoted ex VAT £497 and effective rental £542.0
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Believe it’s after tax as we don’t operate a salary sacrifice scheme.0
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Tax treatment of local authority officials and employees: car leasing schemes
https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim658600
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