Payments for private use on a van

Payments for private use on a van

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Hi,

I have a brain teaser that relates to 480(2017) section 158 or 14.16 'Payments for private use'.

"The amount chargeable on each employee is reduced pound for pound by the amount which the employee is required to pay, and actually pays, for private use of the van."

If an employee contributes £100 for private use within the year. What would the reduction be made against? The BIK charge? The BIK+FBIK charge? What the employee actually pays?

I am a little lost on the whole topic.

Replies (24)

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By Accountant A
28th Nov 2017 13:03

Have a chat with your accountant. I don't think it will tease his/her brain for long.

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Replying to Accountant A:
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By taxisvtaxing
28th Nov 2017 14:10

Thanks, but I am a student and I don't have an Accountant.

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Replying to taxisvtaxing:
By Ruddles
28th Nov 2017 14:12

Ask your tutor then

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Replying to Ruddles:
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By taxisvtaxing
28th Nov 2017 14:20

Can you please troll elsewhere. I am looking for serious replies to my query

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Replying to taxisvtaxing:
RLI
By lionofludesch
28th Nov 2017 14:30

This isn't a homework service.

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Replying to taxisvtaxing:
By Ruddles
28th Nov 2017 14:32

Only serious questions deserve serious replies. If you want a proper reply from an internet forum, here's a tip - don't refer to long-standing members as trolls.

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Replying to Ruddles:
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By taxisvtaxing
28th Nov 2017 14:52

God knows how you have not been banned already with your sarcastic condescending replies. You make the environment toxic.
Go find someone else to bother

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By Ruddles
28th Nov 2017 13:14

Unusually for HMRC, the wording of their guidance quoted above could not be clearer. The real brain teaser here is trying to understand where the difficulty lies in interpreting those words.

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Replying to Ruddles:
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By taxisvtaxing
28th Nov 2017 14:13

An example could have made it clearer.

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Replying to taxisvtaxing:
By Ruddles
28th Nov 2017 14:24

Why not make up your own example?

Substituting any amount you want for "The amount chargeable" and any other (preferably smaller) amount for "the amount which the employee is required to pay"

You don't need to be qualified to compute x-y =?

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RLI
By lionofludesch
28th Nov 2017 13:36

I vote it reduces "what the employee actually pays".

Partly because I don't know how that would work.

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Replying to lionofludesch:
By Ruddles
28th Nov 2017 14:11

Pretty obvious, I would have thought.

Employee pays £100, so the £100 reduces the payment of £100 to £nil. So the chargeable benefit is reduced by £nil.

Is that not what the legislation says?

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Replying to Ruddles:
RLI
By lionofludesch
28th Nov 2017 14:28

If it does, I wouldn't pay.

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By justsotax
28th Nov 2017 14:45

the bar appears to be set extraordinarily low to be classed as a troll by youngsters (I assume) these days....'ask your tutor' was reasonably and appropriate...(they do have email these days I believe)....

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Replying to justsotax:
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By taxisvtaxing
28th Nov 2017 14:56

I had a simple query, it didn't require response of:

"You don't need to be qualified to compute x-y =?"

"The real brain teaser here is trying to understand where the difficulty lies in interpreting those words."

"Ask your tutor then"

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Replying to taxisvtaxing:
RLI
By lionofludesch
28th Nov 2017 15:03

I see you describe yourself as "Quality Manager".

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Replying to lionofludesch:
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By taxisvtaxing
28th Nov 2017 15:08

I manage quality

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Replying to taxisvtaxing:
RLI
By lionofludesch
28th Nov 2017 15:14

taxisvtaxing wrote:

I manage quality

Ah - quality is not an adjective in this case.

That explains it.

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Replying to taxisvtaxing:
Portia profile image
By Portia Nina Levin
28th Nov 2017 15:04

I agree. People should make some sort of allowance when the person asking the question is clearly stupid.

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Replying to Portia Nina Levin:
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By Dib
28th Nov 2017 17:05

Careful, you will be told off for trolling!

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Replying to taxisvtaxing:
By Ruddles
28th Nov 2017 16:13

Exactly what is wrong with "ask your tutor"? If you don't think that s/he is able to help, I'd find another one if I were you.

This is a site for professionals to assist, argue with, and slag off, each other. It is not - as pointed out - a homework class. I think it is you that needs to go and find someone else to bother.

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Replying to Ruddles:
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By taxisvtaxing
29th Nov 2017 15:44

'Professionals'

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Replying to taxisvtaxing:
By Ruddles
29th Nov 2017 15:49

George Cowley

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By Tim Vane
28th Nov 2017 16:26

{Koala emoji}
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