I am currently on a scheme where my employer contributes to the cost based on my business miles. I then pay the remainder and claim business miles back at a low rate (12-15ppm). I pay BIK tax on this, which I don't dispute.
The new scheme, which I'm looking at for when this lease ends in Feb next year, is based around work not paying any contribution towards the lease, but allowing me to claim business miles back at a rate of 64ppm, which is the same amount as private car owners. I will cover the lease cost each month, taken directly from salary. My question is - Am I going to have to pay BIK? I've worked out a number of scenarios, but am unsure if in the eyes of the HRMC it will be classed as a BIK. One of the scenarios is that my monthly payments will add up to more than the cash equivalent value. But then I've read on some guidance that 'lease payments are not considered'.
If someone with expertise in this area could give me some advice it would be greatly appreciated.