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    • Tete du Pain
    • By Tete du Pain 8th Aug 18, 7:09 PM
    • 3Posts
    • 0Thanks
    Tete du Pain
    Bik and Company Car
    • #1
    • 8th Aug 18, 7:09 PM
    Bik and Company Car 8th Aug 18 at 7:09 PM
    Hi all. Also posted this in motoring, but may be more relevant here...

    Hi all,


    I get a company car allowance or lease allowance with work. My lease allowance is £470 per month, which is great. I know that the car I choose is given a BIK %, which is then applied to the value of the car and then this is removed from my tax free allowance annually.!


    My question is this... I am also given the option to go above my allowance and get a better car. How does this work with BIK? I.e. if I paid an additional £100 per month to get a whizzy german exec machine, the list price would be higher, but I am paying a portion of that list price myself, so in my mind shouldn't be liable for the full BIK % applied to the full list price. Is that correct?


    Not sure how this works out so I need someone who understands tax to help me!


    Thanks in advance,

    Alex.
Page 1
    • choccielover
    • By choccielover 8th Aug 18, 8:55 PM
    • 389 Posts
    • 1,350 Thanks
    choccielover
    • #2
    • 8th Aug 18, 8:55 PM
    • #2
    • 8th Aug 18, 8:55 PM
    Iím probably wrong but donít you pay paye on allowances and bik if the car is provided by the company??
    • singhini
    • By singhini 8th Aug 18, 9:36 PM
    • 346 Posts
    • 201 Thanks
    singhini
    • #3
    • 8th Aug 18, 9:36 PM
    • #3
    • 8th Aug 18, 9:36 PM
    Hi all. Also posted this in motoring, but may be more relevant here...

    Hi all,


    I get a company car allowance or lease allowance with work. My lease allowance is £470 per month, which is great. I know that the car I choose is given a BIK %, which is then applied to the value of the car and then this is removed from my tax free allowance annually.!


    My question is this... I am also given the option to go above my allowance and get a better car. How does this work with BIK? I.e. if I paid an additional £100 per month to get a whizzy german exec machine, the list price would be higher, but I am paying a portion of that list price myself, so in my mind shouldn't be liable for the full BIK % applied to the full list price. Is that correct?


    Not sure how this works out so I need someone who understands tax to help me!


    Thanks in advance,

    Alex.
    Originally posted by Tete du Pain
    Hi, having looked at my latest P11d from my employer, my understanding is that they take into account your contributions (the form has a section "Capital Contributions [max £5,000] the employee made towards the cost of the car"). so in your case if you had the car for the full 12 months then they would put £1,200 into that box and take this away from the list price of the car.


    The form goes on to say please read the "P11d Guide and Booklet 480 [2018]" for further advice (perhaps there's a 2019 version for this tax year?


    Either way best not to take my advice but look at the guide booklet 480


    Hope that helps
    Last edited by singhini; 08-08-2018 at 11:12 PM. Reason: italic font used
    • Tete du Pain
    • By Tete du Pain 9th Aug 18, 12:12 PM
    • 3 Posts
    • 0 Thanks
    Tete du Pain
    • #4
    • 9th Aug 18, 12:12 PM
    • #4
    • 9th Aug 18, 12:12 PM
    Thanks both.

    Choccielover, that's correct yes, but if I go through the lease company it's effectively provided by the company. I just have my budget to spend with the lease co.

    Singhini, thank you. That makes sense. I've never seen that but would perfectly address the issue!

    Cheers,

    Alex.
    • pjwhit
    • By pjwhit 9th Aug 18, 1:32 PM
    • 8 Posts
    • 2 Thanks
    pjwhit
    • #5
    • 9th Aug 18, 1:32 PM
    • #5
    • 9th Aug 18, 1:32 PM
    Singhini is correct,.your contributions are deducted from the value to reduce the Taxable amount.
    • kidmugsy
    • By kidmugsy 9th Aug 18, 5:04 PM
    • 11,345 Posts
    • 7,878 Thanks
    kidmugsy
    • #6
    • 9th Aug 18, 5:04 PM
    • #6
    • 9th Aug 18, 5:04 PM
    if I paid an additional £100 per month to get a whizzy german exec machine
    Originally posted by Tete du Pain
    Oh don't. They are unreliable compared to (for example) Korean and Japanese brands, and many people find them short of head room and leg room.
    Free the dunston one next time too.
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