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.

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.

Yamor

I think you've posted this in the wrong section of the forum. But anyway, no, it'll be the list price.

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/6652939/bik-payment-on-company-car-that-is-deemed-as-a-company-asset

BIK on company cars is determined on the list price of the vehicle when new.

However, if this is a vehicle adapted for emergency response (I assume a medical fast response vehicle or similar), is it allocated to you as a company car and available for you to take home and use as a family car when not in work?

That is unusual as such emergency response vehicles are more commonly maintained at a central location and available for use by the on-shift crew as appropriate.

Isthisforreal99

Company car benefit is always calculated on the original list price.

8GHC

https://forums.moneysavingexpert.com/discussion/comment/81862053#Comment_81862053

Its a covert car and used for private use when not on duty but its classed as a company asset rather than a company car hence I am sure there is a difference in what value is used for BIK calcs if its an asset.

8GHC

https://forums.moneysavingexpert.com/discussion/comment/81862050#Comment_81862050

Ah, apologies. I read it as work tax and benefits…. makes sense now I have looked again.

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/81862064#Comment_81862064

You are wrong, it's the list price.

Any company owned vehicle is going to be a depreciating asset and the value recorded in it's balance sheet but that has no bearing on any BIK calculation. You are conflating 2 very different things.

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