BIK on a company car that's a company "asset".

8GHC

Hi. I am trying to get my head round potential tax implications for the company car I have which is deemed as a "company asset" as it had adaptations for emergency response. I know I have to pay BIK which I believe is 20% of the cars value, less my contribution and then 40% of that = 1 year tax. My questions is, is this worked out on the original price of the vehicle or the current value? As when I took over the car a year ago, it was 2 years old. I am led to believe that "company assets" with private use means I am taxed on the current value as opposed to it being a standard company lease car which is taxed as per the list price. Could some kind soul clarify as I cant determine the answer from anything I can see on line. Thank you.

MyRealNameToo

You normally would pay it on the manufacturers list price, dont know if there are any special rules if its heavily modified after manufacture.

It makes no difference if the company chooses to lease it or buy it outright from a BIK perspective.

Isthisforreal99

Duplicate post on which correct advice has already been given - https://forums.moneysavingexpert.com/discussion/6652939/bik-payment-on-company-car-that-is-deemed-as-a-company-asset#latest

Isthisforreal99

You may be thinking of "use of assets placed at an employees disposal" where it's a % of the value but that legislation specifically excludes cars

https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim21632

EnPointe

the OP needs to be clear about their circumstances

if it's 'company asset' are you the company owner or are you an employee ( or Office Holder) in a mangerial role who may have to respond from home either 'on call' or whome works a 'flexible duty system' working pattern ?

is the vehicle fully marked and substantially adapted ( e.g. it's based on an estate car but it's effectively a van as we see with some Ambulance FRVs or Police Dog units i.e. it only has front seats and the rear 'windows' are fully opaque due to livery / being panelled over ) or isi just a tax dodge sets of warning devices fuitted ot s standard passenger care