Car Insurance for Director Cars as BIK?

Director personal cars are included in trade insurance policy

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Anyone came accross anything like this?  How should this be treated as a BIK on the directors?  Trade is in the vehicle industry, company owns a van and a car in its own name for business.  Trade insurance (covers all insurances such as PL, EL, Buildings and Contents, Vehicles etc) is charged at 1 fixed amount per month.  5 vehicles are mentioned as insured on the policy.  The two held in the company name for company business only, then a car for each of the 3 directors that they personally own and drive (occassionally on business but mainly personally).  Only 1 of the Directors have their own private insurance policy the other 2 only have their vehicles and themselves insured through the limited company.  I am of the opinion that this would generate a BIK as including the private cars on the business policy is not 'wholly and exclusively' for the benefit of the business.  The question them becomes how on earth would the BIK value be computed?  Any help would be appreciated...

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By OldParkAcct
05th Apr 2021 10:20

The cost of the BIK is the marginal cost of including the extra vehicles. You will probably end up with a very low cost as the cost of adding additional cars to existing trade policy is often nominal.

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Replying to OldParkAcct:
By tracyannw
05th Apr 2021 10:36

Apparently in this case there was no additional cost so would that indicate no benefit in kind?

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