BIK - own car/company insures

BIK - own car/company insures

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I've recently taken over managing the company's vehicle fleet and insurances.

None of the directors has a company vehicle but I've been advised that each of their vehicles is insured through the company's fleet policy. Needless to say, the cars are Range Rovers and Mercs.

Does this give rise to a taxable benefit? If so, how do I assess it?
Peter Crabtree

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By User deleted
06th Jan 2006 08:58

Insurance premium = BIK
I think the insurance premium should be declared as a benefit in kind on the P11D.

The employees concerned then make an expense claim at FPCS rates for mileage incurred on their employer's business.

Overall (net) there might not be any tax payable by the employees concerned.

Then there's the Class 1A NIC to consider.
Logically as no net benefit no liability, but to achieve this need to tick / complete the correct boxes on the P11D. Maybe section M "Other items" on the back of the P11D, the second line (one of many boxes labelled 1.22) - use one that hasn't got "1A" attached to it.

Alternatively section N, one of the boxes labelled 1.23 (Travelling).

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