Director, low Payroll & Company Car?

Director, low Payroll & Company Car?

Didn't find your answer?

A company director - on £5,700 pa wants a company car (wife of MD) - expected list price £25,000. Can anyone advise if HMRC will question this?

Replies (3)

Please login or register to join the discussion.

avatar
By neileg
30th Sep 2010 11:13

No and yes

Why would they question this?

Will they regard this as a BIK? Absolutely!

Thanks (0)
avatar
By wardandco
30th Sep 2010 13:23

minimum wage

If the director is fulltime, which I guess may not be the situation here as they are the wife of the MD, wouldn't the BIK give rise to a contract and therefore need minimum wage? 

Thanks (0)
David Winch
By David Winch
30th Sep 2010 14:17

Benefit taxable on whom?

Is the car to be provided because of the wife's employment or because her husband is the MD?  If the latter then the car should go on his P11D rather than hers and be taxed on him.

David

Thanks (0)