📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Company car tax when not used for BIK

2»

Comments

  • Grumpy_chap
    Grumpy_chap Posts: 18,339 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    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. 
    Is it worth selling the old car, save the running costs and use the company car as your own?

    If an EV is available for the company car, the BIK is very low.
  • KingOfSnake
    KingOfSnake Posts: 36 Forumite
    Second Anniversary 10 Posts
    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. 

Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.3K Banking & Borrowing
  • 253.2K Reduce Debt & Boost Income
  • 453.8K Spending & Discounts
  • 244.3K Work, Benefits & Business
  • 599.5K Mortgages, Homes & Bills
  • 177.1K Life & Family
  • 257.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.