Does RFL get included in the list price of car, for BIK purposes?
Yes I ought to know.
With kind regards
Clint Westwood
Replies (10)
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No it isn't
The "car tax" referred to in s 171(1) does not mean vehicle excise duty; it is referring to the (new) car tax that used to apply to purchases of new cars.
See: https://www.accountingweb.co.uk/anyanswers/question/p11d-car-list-price-...
And: https://www.accountingweb.co.uk/anyanswers/question/p11d-car-value
What is an isn't included in the list price of the car is the concern of the manufacturer's. The taxpayer just uses the manufacturer's published list price, without having to think about it.
You (or more accurately the manufacturers) do indeed include th first year excise duty (widely called 'showroom tax' at launch) in the P11D value.
However, as said above, you probably don't care as you will jut be using the manufacturer's value (adjusted for accessories fitted) anyway, surely?
Not a stupid question really
Sorry if this is a bit late, but here's your answer from HMRC's perspective & I'm inclined to agree with you too; include it
www.gov.uk/government/uploads/system/uploads/attachment_data/file/412176...
If link doesn't work it's HMRC's expenses & benefits toolkit
Point 5 - click on the link & shows an example of what's included.
Yes but
S. 171(1) has to be read in the context of ss 122 & 123. VED is not part of the price the car, it is a cost of keeping and using the car on the public highway for a period of time. Payment of the ongoing VED is then outwith the car benefit provision by virtue of s 239.
It doesn't make anys sense to include the first year's VED in the list price. You could decide to buy the car with or without it or with 6 or 12 months worth.
I very much stand by just using the manufacturer's published list price though, which is exactly what s 123(1) requires.
Not any more
Steve I would have agreed with you up t five years ago - when you could probably have bought the car without VED if you' wanted - like you can with a used car.
Now, the first year VED includes the traditional RFL plus a one off tax. The former isnt included, the latter is.
Edit: I hav managed to quickly fnd a link that supports this:
http://www.seat.co.uk/content/medialib/seat/uk/fleet---business/brochure...
Er...
... I accept the point that Mr_awol makes, based on the linked document.
HOWEVER, doe that mean that the list price of say a D banded car is then reduced by £100 in the final analysis? There seems to be a negative "showroom tax" for bands B to D.
BUT the figure I would use (using a Seat Leon Cupra as an example) would be found here: http://www.parkers.co.uk/cars/reviews/seat/leon/cupra/facts-figures/