Is business car insurance taxable as BIK? Is business car insurance taxable as BIK?
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    Default Is business car insurance taxable as BIK?

    Yes I did ask the accountant.. this is just a confirmation to get a second opinion.

    Two questions:

    1. If I lease the car through the business and the business also pays the insurance - do I (the person who uses the car for business AND for personal use) have to pay BIK on the insurance element of it?
    2. Can I insure the company car myself (thus avoiding the tax complications)

  2. #2

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    Quote Originally Posted by cannon999 View Post
    Yes I did ask the accountant.. this is just a confirmation to get a second opinion.

    Two questions:

    1. If I lease the car through the business and the business also pays the insurance - do I (the person who uses the car for business AND for personal use) have to pay BIK on the insurance element of it?
    2. Can I insure the company car myself (thus avoiding the tax complications)
    Go and see what proper accountants say Company car but paying for insurance personally - reduces benefit in kind? | AccountingWEB

    So I think the answer is

    1. Yes
    2. It won't help in any sane way.
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    Prof Cunning @ Oxford Uni

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    Quote Originally Posted by cannon999 View Post
    Yes I did ask the accountant.. this is just a confirmation to get a second opinion.

    Two questions:

    1. If I lease the car through the business and the business also pays the insurance - do I (the person who uses the car for business AND for personal use) have to pay BIK on the insurance element of it?
    2. Can I insure the company car myself (thus avoiding the tax complications)

    To answer question 2: Yes, of course you can. The insurance will ask who the registered owner is, and you put down the name of your company.

    It's similar to you owning a car, but the insurance is in your wife's name as the main driver.
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    Quote Originally Posted by eek View Post
    Go and see what proper accountants say Company car but paying for insurance personally - reduces benefit in kind? | AccountingWEB

    So I think the answer is

    1. Yes
    2. It won't help in any sane way.
    Why would it not help? Business car insurance tends to be more expensive and my company paying for it means I am effectively paying more due to the BIK personal tax and company 1A NIC

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    Prof Cunning @ Oxford Uni

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    Leasing a car through the company may not be the great idea you think it is.
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    Quote Originally Posted by WTFH View Post
    Leasing a car through the company may not be the great idea you think it is.
    It is for electrical cars, the BIK is 0%

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    Prof Cunning @ Oxford Uni

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    Quote Originally Posted by cannon999 View Post
    It is for electrical cars, the BIK is 0%
    It's not if you think you might close your company down within the timeframe of the lease.

    Nothing to do with BIK.
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    Quote Originally Posted by WTFH View Post
    It's not if you think you might close your company down within the timeframe of the lease.

    Nothing to do with BIK.
    I am not sure what you mean

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    Prof Cunning @ Oxford Uni

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    Quote Originally Posted by cannon999 View Post
    I am not sure what you mean
    If you have a business lease and you close your company, the car goes back and your company will probably have to pay some kind of penalty for stopping the lease early.
    You end up with no car.

    If you want to transfer the car to personal ownership, you'll need to stop your business lease and then start a personal lease - it might not be at the same rate + VAT, etc.

    There's several threads on here about it.
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