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Company car tax when not used for BIK
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Is it worth selling the old car, save the running costs and use the company car as your own?noody123 said:My own car would not cope with the daily millage required for my job. (it's old). Looks like I am stuck with BIK tax.
If an EV is available for the company car, the BIK is very low.0 -
Pennywise, is absolutely right - a car only has to be "available" for private use - it doesn't have to used privately, just "available": https://www.legislation.gov.uk/ukpga/2003/1/section/116
The only way round it is for your employer to specifically prohibit private use and make it a disciplinary offence if you do. The second tranche is that you need to make sure it is not actually used privately - i.e. keep mileage logs of all the business jouneys and prove that these tie-in with the service records etc. See https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim25105
So, in summary, if you get HR to inform you your car is not available for private use and it is not used EVER privately, they can amend the P11D value to £0. This will generate your tax refund directly with HMRC.
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