P9D Employee - company car taxable?

P9D Employee - company car taxable?

Didn't find your answer?

I have a part-time employee who is now earning less than £8,500 including a company car because they have taken a salary sacrafice to claim child care vouchers from the employer. I assume there is no tax charge on the company car benefit to the employee because they are a p9d employee? Is the £8,500 limit pro-rata for part-time employees in which case they would still be a p11d employee and the benefit remains taxable?
Simon Hall

Replies (2)

Please login or register to join the discussion.

avatar
By Cant Add Up
17th Mar 2006 14:54

It's can't be pro-rata...
....coz otherwise no-one would be eligible as you would have to be on less than the minimum wage!!!!!!!!!?????

Thanks (0)
avatar
By User deleted
18th Mar 2006 01:10

The £8500 includes the BIK
A point to watch is that the P11D limit is not "a salary of £8500 or more" but rather salary + cost of providing the benefit - if these two exceed £8500 then it's a P11D rather than a P9D.

The £8500 limit is not applicable to directors in close companies in most circumstances - they're caught regardless of salary level.

Thanks (0)