Furlough and Company Cars

BIK saving

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If we furlough various employees can we also inform HMRC that they will not be using their company cars thus stopping any BIK .

Would it help if the employee took a picture of the mileage at start of furlough and one on going back to work.

I`m edging towards it being ok ! .


Replies (2)

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By paul.benny
03rd Apr 2020 11:48

The test for bik on cars is being made available to the employee, not merely not using it.

To escape a bik charge, I suggest the vehicle would have to be returned to the employer's premises and the keys handed in so that it is no longer available.

Thanks (1)
By Wilson Philips
03rd Apr 2020 12:00

Your problem is that if they're on furlough that means that they will not be using it for business purposes. If anything, private use may therefore increase (in relative if not absolute terms). The worker is still employed, and if the car is still available for private use the BIK will, IMO, stand.

But who knows what further reliefs are still to be put in place?

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