Detailed calculation Martin, The AA site is fine for basic calculations, but if you want to also add options and see the amount of tax you will pay if the value of the benefit straddles the 40% threshold, then try www.comcar.co.uk
Van taxes The BIK for commecial vehicles is just £3,000. More details can be found on http://www.vantax.co.uk/newcar/companycar/vancalc/g1select.cfm?clk=3 The full VAT reclaim for LCVs is standard and there is no private use restriction that a VAT registered company need worry about. The taxable benefits of private use are all covered by the £3000 BIK.
We have come across some earnest VAT collectors who believe that EC legislation to impose VAT on all private use means that home to work travel in a van should be taxed, even when exempted by national income tax legislation. In theory the element of reclaimed VAT that relates to private use should be repaid by the ultimate user, but I have not heard of this ever being imposed?
Non-taxable options The newly revised version of Comcar has been built to help provide information on this point. If you have a play with the online car tax calculator at http://www.comcar.co.uk/newcar/companycar/taxcalc/g3options.cfm?ID=108619&clk=1 you will see that the BMW 3yr service packs do not increase the BIK value, whereas other options do.
Listing of Euro IV diesels If you are choosing new cars, have a look at www.comcar.co.uk where we list euro IV diesels by manufacturer/basic features as well as a complete listing in order of tax.
The site aims to deal with queries like yours by providing all the data and calculations in one place. Let me know if anything is missing.
UK list price It looks like the Inland Revenue have given 3 options without saying which one takes precedence. However the full text says "the UK list price of the car published by the manufacturer, importer or distributor on the day before the date of registration". I guess they would argue that if a UK list price exists, there is no need to look elswhere. Also, and perhaps more decisively, they can say that a foreign seller cannot publish "the UK list price".
The IR wording could be clearer, but I think its clear enough to give you no chance of challenging the usual interpretation.
Nice try though. It looks like the strength of the euro will bring the car importers to try anything.
A full list of UK list prices is provided on http://www.comcar.co.uk .The bad news is that a large amount of prices will go up again on 1st October due to the weak pound.
Hope there is some sense amongst your directors. You are right on both counts. If it is too onerous to change the finance lease to an agreement between the finance provider and your MD, you will have to wait until the primary term is over. In the meantime it may be possible for your MD to reimburse the company for all the costs associated with the private use of the car (including VAT) but check with your local HMIT or tax advisor that this is adequate to avoid any car tax benefit.
In the first instance, get hold of the lease agreement and read the conditions. Your MD could be exposed on several counts and might even thank you for keeping him clean. But tread very carefully if they don't want to hear this !
Biodiesel car tax I have got a few ideas as to how you could develop this. I have been running a website devoted to company car tax, and have also come across grants that could be suitable. Please contact me on [email protected] if you want any help, or at least keep me informed so that I can publicise any breakthroughs.
Information on private fuel benefit for 2003/4 The fuel benefit check calculator on the Comcar website will aim to tackle this decision process, but won't have next year's rates until the end of this month. However you can use it now to check the fuel benefit and tax payable on all new UK cars for this year and next at http://www.comcar.co.uk/dir1in.cfm
Benefit in kind data Have a look at http://www.comcar.co.uk which allows you to sort on-line the bik on all current uk car models. If you can devise a standard calculation format for the owner/managed business decision, please send it to me at [email protected] and I may be able to add it the site for future use.
My answers
Detailed calculation
Martin,
The AA site is fine for basic calculations, but if you want to also add options and see the amount of tax you will pay if the value of the benefit straddles the 40% threshold, then try www.comcar.co.uk
Van taxes
The BIK for commecial vehicles is just £3,000. More details can be found on http://www.vantax.co.uk/newcar/companycar/vancalc/g1select.cfm?clk=3
The full VAT reclaim for LCVs is standard and there is no private use restriction that a VAT registered company need worry about. The taxable benefits of private use are all covered by the £3000 BIK.
We have come across some earnest VAT collectors who believe that EC legislation to impose VAT on all private use means that home to work travel in a van should be taxed, even when exempted by national income tax legislation. In theory the element of reclaimed VAT that relates to private use should be repaid by the ultimate user, but I have not heard of this ever being imposed?
New 20% band on company car tax
Hi Angus,
If you have a look at www.comcar.co.uk you will see the 20% calculations shown for all new cars.
Non-taxable options
The newly revised version of Comcar has been built to help provide information on this point. If you have a play with the online car tax calculator at http://www.comcar.co.uk/newcar/companycar/taxcalc/g3options.cfm?ID=108619&clk=1
you will see that the BMW 3yr service packs do not increase the BIK value, whereas other options do.
Listing of Euro IV diesels
If you are choosing new cars, have a look at www.comcar.co.uk where we list euro IV diesels by manufacturer/basic features as well as a complete listing in order of tax.
The site aims to deal with queries like yours by providing all the data and calculations in one place. Let me know if anything is missing.
Unfortunately we can only cover new cars.
Rupert Russell
UK list price
It looks like the Inland Revenue have given 3 options without saying which one takes precedence. However the full text says
"the UK list price of the car published by the manufacturer, importer or distributor on the day before the date of registration".
I guess they would argue that if a UK list price exists, there is no need to look elswhere. Also, and perhaps more decisively, they can say that a foreign seller cannot publish "the UK list price".
The IR wording could be clearer, but I think its clear enough to give you no chance of challenging the usual interpretation.
Nice try though. It looks like the strength of the euro will bring the car importers to try anything.
A full list of UK list prices is provided on http://www.comcar.co.uk .The bad news is that a large amount of prices will go up again on 1st October due to the weak pound.
Hope there is some sense amongst your directors.
You are right on both counts. If it is too onerous to change the finance lease to an agreement between the finance provider and your MD, you will have to wait until the primary term is over.
In the meantime it may be possible for your MD to reimburse the company for all the costs associated with the private use of the car (including VAT) but check with your local HMIT or tax advisor that this is adequate to avoid any car tax benefit.
In the first instance, get hold of the lease agreement and read the conditions. Your MD could be exposed on several counts and might even thank you for keeping him clean. But tread very carefully if they don't want to hear this !
Biodiesel car tax
I have got a few ideas as to how you could develop this. I have been running a website devoted to company car tax, and have also come across grants that could be suitable. Please contact me on [email protected] if you want any help, or at least keep me informed so that I can publicise any breakthroughs.
Information on private fuel benefit for 2003/4
The fuel benefit check calculator on the Comcar website will aim to tackle this decision process, but won't have next year's rates until the end of this month. However you can use it now to check the fuel benefit and tax payable on all new UK cars for this year and next at http://www.comcar.co.uk/dir1in.cfm
Benefit in kind data
Have a look at http://www.comcar.co.uk which allows you to sort on-line the bik on all current uk car models. If you can devise a standard calculation format for the owner/managed business decision, please send it to me at [email protected] and I may be able to add it the site for future use.