Benefit in Kind tax

[Mailman]

Lads,

How does one apply this tax for company cars? If I was to get a car worth around £25k as my company car how would I apply BiK tax for the use of that vehicle?

And more importantly...are there any ways to minimise exposure to this tax?

With all these taxes it really does look like the government wants its pound of flesh innit!

Regards

Mailman

[ratewhore]

Go here -

http://www.theaa.com/allaboutcars/co...sp?page=cartax

Put the car details in and it will spit out how much tax you will pay. You can reduce that amount by contributing yourself or you could buy a van which is really cheap tax wise until next year...

[IT contract agent]

tell the IR its a pool car

[Mailman]

Haha, sometimes I like the way you think IT Dodgy bugger! But I wont get away with that as my work reports directly to Gordo's henchmen on the status of my company car!

Ratewhore, thanks for the link. My car comes out at just over £600 a year using their calculator.

From what I save, not having to pay for insurance and services etc I still come out on top (only just) but also get a brand spanking new car to ferry my family around in...I mean...its not like Im going to be using it for work anyway!

Regards

Mailman

[ASB]

My car comes out at just over £600 a year using their calculator.

Don't forget that is the tax you will actually pay. Assuming you are a basic rate taxpayer that means the taxable benefit is approx 2500. So that means there is another 300 quid ish class 1a to be paid as well.

[Mailman]

No wonder this government has such a problem with getting people to pay "their fair share" of tax!

Quite determined to get their pound of flesh aint they

Mailman

[XLMonkey]

last time I looked, there was no way of buying a company car that was actually cheaper than buying it myself. Apart from the points already listed, the other catches are:
- you are taxed on the list price of the car, not the price you paid
- the VAT on the car is not reclaimable, even by your company
- you can't claim the standard IR mileage rates if you are driving a company car, you can only reclaim the petrol.
- if you're flat rate VAT registered, your company can't reclaim the VAT you pay on the petrol

all in all, it's a load of kn***ers.

[ratewhore]

lease it then...