I am really going to regret this...

[Grandad]

Originally Posted by Will

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

Moi ?

[Grandad]

Originally Posted by Nutcase

About average for my Saab

But at least I can get my key out of the ignition ( or find where the ignition is )

as many times as I work this out in a Saab I still forget

[Grandad]

Originally Posted by Joe 90

haha what on earth do you drive?

Porsche Cayman S

Though I borrowed the missus' TT recently and only got 17mpg in town

[Garp]

What is BIK in plain english?

[Grandad]

Originally Posted by Garp

What is BIK in plain english?

Benefit in Kind

i.e. company car tax liabilty

[Nutcase]

Originally Posted by Grandad

But at least I can get my key out of the ignition ( or find where the ignition is )

as many times as I work this out in a Saab I still forget

It's nowhere near your kneecap would end up in a crash (apparently that's why they do it)

[Dr. Z]

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]

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]

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.

[Nutcase]

Well that's what revenue and customs bloke told me