Good Monring everyone. I have been trying to look into the BIK aspect of a company leasing a car for a manager. There isnt enough specific information on HMRCs website. Basically the manager currently has a company car. He wants to give this up so the arrangement would be the company leases and pays for the car. The Manager would then repay that amount back to the company, possibly directly from his salary. Then he would claim mileage expenses from the company for business miles travelled in this vehicle. Now I believe this situation would still attract some element of BIK - exaclty what that would be and how it would be calculated I cannot fine. Does anybody have any experience/expertise with this?? Thanks
Quite handy that it uses worked examples so quite fun to work through over some of the more dry articles on the subject matter out there.
Have a read and if you need more info then repost any follow up questions and fingers crossed either myself or one of the other regulars will be freed up enough to give a better answer than just a link.
sorry again,
kind regards,
Shaun
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Many thanks for the link and taking the time to post it - much appreciated.
I actually rang HMRC - not expecting to get an answer because they can sometimes answer a question without actually answerin a question.
Just in case anybody else comes across this you work out the calculation by using the list price of the car as per usual - you deduct the cost of the lease (which the employee is paying back to the company) and the figure you are left with is the price used to calculate the car benefit charge - you then go on to make the calculations as you would do for a normal company car P11d
