I am really going to regret this... - Page 3

Grandad · 08-03-2010, 01:46

Quote:

Originally Posted by Will

Well you shouldn't be blasting around in town now should you?!

Moi ?

Flibster · 06-03-2010, 15:55

YAY! An Alfa. *and a pretty one too*
Boo! Fuel made from Satans wee.

Dr. Z · 06-03-2010, 17:24

I did expect the fuel type to raise a few comments, but these days for the company car driver it really is the only choice.

The 3.2 V6 Q4 Brera would be the ideal choice of the range, they dont even cost that much (still less than I could have leased a 320D for!) but the BIK rate is just crazy, before you even get to the RIDICULOUS fuel consumption!

Desmo · 07-03-2010, 19:36

Nice one Drz, really liking the look of that

Garp · 08-03-2010, 02:57

What is BIK in plain english?

Grandad · 08-03-2010, 03:02

Quote:

Originally Posted by Garp

What is BIK in plain english?

Benefit in Kind

i.e. company car tax liabilty

Dr. Z · 08-03-2010, 20:53

Quote:

Originally Posted by Grandad

Benefit in Kind

i.e. company car tax liabilty

Indeed.

It is based on the CO2 output of the car, +3% if it is a Diesel, and is expressed as a percentage. You then take the RRP of the car including VAT and delivery, on the day before it is delivered (not ordered!) and work out the Benefit In Kind value. You then pay tax on that at your tax rate.

So if you had a £30,000 car that had a 25% BIK rate, as a 40% taxpayer you would have to pay £3000 per year in tax, or £250 a month.

Nutcase · 08-03-2010, 21:31

I get really annoyed at the company car tax system. I have a work van, that I don't use for personal use. I pay no tax whatsoever on it (if you do use it for personal there is a fixed £3k tax on it, plus fuel benefit tax).

I was offered a company car instead, but having spoken to the tax people, even if I didn't use it for personal use at all, because a car is more likely to be used for personal than a van, there is no way of NOT paying the tax on it

so I declined the car.

Dr. Z · 08-03-2010, 21:47

Quote:

Originally Posted by Nutcase

I get really annoyed at the company car tax system. I have a work van, that I don't use for personal use. I pay no tax whatsoever on it (if you do use it for personal there is a fixed £3k tax on it, plus fuel benefit tax).

I was offered a company car instead, but having spoken to the tax people, even if I didn't use it for personal use at all, because a car is more likely to be used for personal than a van, there is no way of NOT paying the tax on it

so I declined the car.

That is absolutely not true! Your company will declare the car as for personal use or not when it comes to the VAT return, and that forms the basis on which you may or may not pay the tax. Your company mileage will be recorded if you have a fuel card as well, so thats even more evidence. Your P11D form at the end of the year should reflect this also.

Dr. Z · 08-03-2010, 22:18

They get 50% of the VAT back if it is for personal use as well as business mileage, 100% back if it is solely for business use, so that will be declared to HMRC.

06-03-2010, 15:55	#2
Flibster Moonshine Join Date: Jul 2006 Posts: 3,388	YAY! An Alfa. and a pretty one too Boo! Fuel made from Satans wee. __________________

06-03-2010, 17:24	#3
Dr. Z I'm going for a scuttle... Join Date: Jul 2006 Posts: 2,021	I did expect the fuel type to raise a few comments, but these days for the company car driver it really is the only choice. The 3.2 V6 Q4 Brera would be the ideal choice of the range, they dont even cost that much (still less than I could have leased a 320D for!) but the BIK rate is just crazy, before you even get to the RIDICULOUS fuel consumption! __________________ Last edited by Dr. Z; 06-03-2010 at 17:28.

07-03-2010, 19:36	#4
Desmo The Last Airbender Join Date: Jun 2006 Location: Pigmopad Posts: 11,915	Nice one Drz, really liking the look of that __________________

08-03-2010, 02:57	#5
Garp Preparing more tumbleweed Join Date: Jun 2006 Location: Hawaii Posts: 6,038	What is BIK in plain english? __________________ Mal: Define "interesting"? Wash: "Oh, God, oh, God, we're all gonna die"?

08-03-2010, 22:18	#10
Dr. Z I'm going for a scuttle... Join Date: Jul 2006 Posts: 2,021	They get 50% of the VAT back if it is for personal use as well as business mileage, 100% back if it is solely for business use, so that will be declared to HMRC. __________________

08-03-2010, 21:31	#8
Nutcase Moonshine Join Date: Dec 2006 Location: Chelmsford, innit! Posts: 3,979	I get really annoyed at the company car tax system. I have a work van, that I don't use for personal use. I pay no tax whatsoever on it (if you do use it for personal there is a fixed £3k tax on it, plus fuel benefit tax). I was offered a company car instead, but having spoken to the tax people, even if I didn't use it for personal use at all, because a car is more likely to be used for personal than a van, there is no way of NOT paying the tax on it so I declined the car.