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P11D Season: Sanity request

P11D Season: Sanity request

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"Through" my small ltd. company (3 employees), FRS VAT scheme, I bought a company motorcycle in January this year.

The Personal/Business split - based on the mileage incurred - is approx 5% personal, 95% business.

 
I have calculated the total potential BIK value as 20% of (initial purchase cost + accessories initially fitted + accessories purchased within first tax year > £100). This has then been time apportioned based on the purchase date being early January and tax year ending 5th April.
 
To this is added all of the additional bike-related expenditure in the tax year. All figures have VAT included.
 
I have then taken a figure of 5% of this value and have repaid this as the cost of personal use. I believe this then leaves a 0 value for the BIK. 
 
Approx figures; 
Bike + initial accessories (before VAT reclaimed) = £8000
Accessories > £100 purchased before 5/4/12 (incl VAT not "reclaimed") = £600
"Capital Cost" = £8600.
Days bike owned 90.
First year time apportioned %age = 90/366, due to leap year = 24.6% = £2115.60
Yearly 20% = £423.12
 
Additional related expenditure (incl. Insurance, Tax, Fuel, Servicing, Accessories < £100, etc.) = £1500
 
Total potential BIK = £1923.12
 
To repay cost of personal use = £1923.12 @ 5% = £96.16
 
As this is an amount coming back to the company but across "many categories" I guess it is treated as income for the company which will then in turn suffer additional CT of 20% making the total cost (in Year One and at that usage split) circa £115.
 
I have also "calculated" that the break even point between repaying the costs incurred on personal use vs standing the tax & employers NIC charge seems to be around 13% (don't remember exactly).
 
Trouble is I cannot pin down any other similar examples and hoping I've got this about right.
 
Thanks anyone,
 
Will

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By whopkinscom
25th Jun 2012 16:18

Trying again to get better formatting. Sorry.

I have calculated the total potential BIK value as 20% of (initial purchase cost + accessories initially fitted + accessories purchased within first tax year > £100). This has then been time apportioned based on the purchase date being early January and tax year ending 5th April.

 To this is added all of the additional bike-related expenditure in the tax year. All figures have VAT included. I have then taken a figure of 5% of this value and have repaid this as the cost of personal use. I believe this then leaves a 0 value for the BIK. 

 Approx figures; 

Bike + initial accessories (before VAT reclaimed) = £8000

Accessories > £100 purchased before 5/4/12 (incl VAT not "reclaimed") = £600

"Capital Cost" = £8600.

Days bike owned 90.

First year time apportioned %age = 90/366, due to leap year = 24.6% = £2115.60

Yearly 20% = £423.12

 Additional related expenditure (incl. Insurance, Tax, Fuel, Servicing, Accessories < £100, etc.) = £1500

 Total potential BIK = £1923.12

 To repay cost of personal use = £1923.12 @ 5% = £96.16 

As this is an amount coming back to the company but across "many categories" I guess it is treated as income for the company which will then in turn suffer additional CT of 20% making the total cost (in Year One and at that usage split) circa £115. 

I have also "calculated" that the break even point between repaying the costs incurred on personal use vs standing the tax & employers NIC charge seems to be around 13% (don't remember exactly). Trouble is I cannot pin down any other similar examples and hoping I've got this about right. Thanks anyone, 

Will

 

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