Leased car - just checking

will this attract a BIK

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Hi All

Client has just informed me they have a new company car (£65k Maserati Levante - why ? not sure but he likes it) and the contract is in the company name. Historically on aweb there were threads staing that even if he paid the whole lease payment (via posting the payment in full to his DLA) HMRC would challenge this and reduce the taxable benefit down by only the contribution he made.

I was under the impression that since apollo fuels case it was OK for the company to contract and pay for teh lease as long as he re-imburses in full (via loan account or payment) - can anyone (pretty please) point me i the direction of a positive confirmation to this effect

Many thanks

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By mrme89
23rd Mar 2017 09:35

You calculate the benefit and reduce the benefit by the contributions.

The Apollo case doesn't help you because there were subsequent amendments to s114 ITEPA 2003.

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RLI
By lionofludesch
23rd Mar 2017 09:39

The benefit in kind is unrelated to the costs of the car.

The standard benefit will be list price x relevant percentage - as usual. If he makes a contribution to the provision of the car, by standing the lease costs, they'll be deducted from that.

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