Student finance-Income vs Outgoings

DrEskimo

Ebe_Scrooge said:

Albermarle said:

A company car (whether it's a car supplied by the company, or a car allowance to allow your wife to buy her own car for business use) is a valuable benefit (or Benefit-In-Kind, I think is the correct term?).  Whatever, that's saving you an awful lot of money compared to someone who has to buy and run a car entirely out of their own pocket.  So it's not unreasonable to calculate that as an element of your income.

I think for it to be  BIK of £20K she would have to be driving a gold Rolls Royce !
More typically it is about £4K to £10K

smallzoo2 said:

Her BIK is £13k a seat arona

Must admit I'm not fully conversant with how BIK is calculated.  But for comparison, consider how much it would cost you to personally buy a (brand new?) car of that class, then tax and insure it each year, along with any repairs or consumable items (tyres, brakes etc.).  If these costs are all covered by the company, then it would cost you quite a bit more than £13k, so that perhaps doesn't sound unreasonable?

Like you I don't really get the BIK calculation, but this is against this years taxable income, but the £13k can't be for just 1-years running costs? That would be incredibly unreasonable!

How is the cost attributed each year it's used?

Ebe_Scrooge

DrEskimo said:

Ebe_Scrooge said:

Albermarle said:

A company car (whether it's a car supplied by the company, or a car allowance to allow your wife to buy her own car for business use) is a valuable benefit (or Benefit-In-Kind, I think is the correct term?).  Whatever, that's saving you an awful lot of money compared to someone who has to buy and run a car entirely out of their own pocket.  So it's not unreasonable to calculate that as an element of your income.

I think for it to be  BIK of £20K she would have to be driving a gold Rolls Royce !
More typically it is about £4K to £10K

smallzoo2 said:

Her BIK is £13k a seat arona

Must admit I'm not fully conversant with how BIK is calculated.  But for comparison, consider how much it would cost you to personally buy a (brand new?) car of that class, then tax and insure it each year, along with any repairs or consumable items (tyres, brakes etc.).  If these costs are all covered by the company, then it would cost you quite a bit more than £13k, so that perhaps doesn't sound unreasonable?

Like you I don't really get the BIK calculation, but this is against this years taxable income, but the £13k can't be for just 1-years running costs? That would be incredibly unreasonable!

How is the cost attributed each year it's used?

I would assume that the purchase cost must also be factored in - or at least a proportion of it?  If you had to fork out for a new car yourself then it would be very expensive.  Of course, having bought the car it should last for many years, so I would have thought it's proportioned up somehow, purchase cost divide by expected lifespan, or by depreciation percentage each year?

Not sure - but as others have said, the figures do appear to be a little strange.

[Deleted User]

Does she have any other BIK like health insurance/dental etc?