Barclays ECS car tax

Barclays ECS car tax

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Has anyone come across an ECS (think it means employee car scheme - not to be confused with the HMRC lingo!) tax & NIC delcaration from Barclays Bank?

Basically my client has leased a car via his employer (Barclays - has now left), he also contributed towards the lease. No P11D has been done but I've been given and ECS Tax and NIC declaration - which on the bottom of it says it serves as a P60. This lists the Car payments by Barclays which are shown on the payslip (shown as non taxable) then shows the tax paid and the equivalent gross pay (so the car payments are net of tax) and also ees & ers NIC.

On the payslip the total amount paid is deducted - so the £320 pm is shown as non taxable pay and then £430 is shown as a decution for payment of the lease.

I'm not quite sure what to do with this on my clients tax return!

I have a P45 so have just put figures on from that at the moment as they tie up to the last payslip - what concerns me is that it's being shown as non taxable on the payslip - so presumably it won't be included on the P45?!

I would think that somewhere I have to add on the equivalent gross pay and then take off the tax deducted - what do other people think?

ps - my treatment will affect his tax bill as a higher rate payer and tax on benefit deducted at BR

Many thanks

HG

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Euan's picture
By Euan MacLennan
05th Jun 2008 13:52

Barclays Company Car scheme
It may not be much help, but Barclays has a new company car scheme which apparently replaces ECS and there are some comments about ECS under FAQs, including:

"With ECS the employee who owns the car may make a contribution to the cost and doesn’t pay BIK."

It seems that the employee owns the car, rather than it being leased.

Does the client not have the original literature that told him about the ECS and in particular, the tax treatment?

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