Does a company vehicle have a value to wage?

pcpaul22

I work as a service engineer and need a vehicle to do the job. My company allow a choice of car or van. Because I chose a car I pay BIC tax but I'm trying to work out my hourly rate, so is there a value I need to add for the car?

Hope that makes sense and someone can help

Marcon

pcpaul22 said:

I work as a service engineer and need a vehicle to do the job. My company allow a choice of car or van. Because I chose a car I pay BIC tax but I'm trying to work out my hourly rate, so is there a value I need to add for the car?

Hope that makes sense and someone can help

There's a good clear explanation here which should help: https://www.selectcarleasing.co.uk/guides/employee-company-car-tax-bik

DullGreyGuy

The BIC is based on the value of the vehicle, CO2 emission and your marginal tax rate. Its an annual charge so you will need to decide how you apportion it down to an hourly basis

pcpaul22

Ok, so I clearly haven't explained properley.

I'm trying to work out my hourly rate (checking I'm not being paid less than minimum wage) by dividing my salary by the numbers of hours worked. My question is does the car affect the calculation?

Marcon

pcpaul22 said:

Ok, so I clearly haven't explained properley.

I'm trying to work out my hourly rate (checking I'm not being paid less than minimum wage) by dividing my salary by the numbers of hours worked. My question is does the car affect the calculation?

BIK such as a car aren't taken into account when calculating whether or not you are being paid the minimum wage.

molerat

Your hourly rate will be as shown on, or calculated from, your pay slip.  The BIK value of the vehicle could be seen as, and is effectively taxed as, being additional pay.

DullGreyGuy

pcpaul22 said:

Ok, so I clearly haven't explained properley.

I'm trying to work out my hourly rate (checking I'm not being paid less than minimum wage) by dividing my salary by the numbers of hours worked. My question is does the car affect the calculation?

No, its not a cash benefit and minimum wage is only based on cash... the one exception to this is accommodation