BIK on Commercial Vehicle

BIK on Commercial Vehicle

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Hello Everyone,

I was hoping that I could get a bit of help understanding the Benefit in Kind slightly better.

My family have a LTD company which has two directors being the parents, I am looking to lease a vehicle which would be a commerical vehicle classed for both business and private use at roughly £260 inc VAT (we are not VAT reg). The P11D is £28,558

My main question here is how would it affect myself or the company if I was to pay the company £260 p/m for the duration of the lease? I would just like a better understanding before looking further into it.

Any help would be appreciated.

Many Thanks

I

Replies (1)

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By cheekychappy
03rd Feb 2016 10:05

Paying the lease will not avoid the benefit.

 

The benefit will be reduced by the contribution. This may still result in a tax charge.

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