Company Car and benefit in kind

[ishfaqsangra]

It is definitely an accountant thing but would appreciate if some one can guide a bit.
I have transferred my own car to Company's name as I have sent VOS5 registration form to DVLA to transfer it to my company name.
I have couple of questions
-if I give this car to one of employee of my company who uses it for marketing purposes to go on different places then
1- who need to pay "benefit in kind tax which will be calculated through standard process(as given on HMRC website,depending on different factors,Co2 emission,number of days used,registered price etc)
2-are these benefit in kind taxes needs to be paid irrespective of the personal allowance(say for example someone earning less than the personal allowance but uses that car)

Anybody with any suggestion is welcome,,,,I did ask the accountant he said company has to pay benefit in kind tax

[ishfaqsangra]

Identify which benefits are taxable
Not all benefits are taxable, and some taxable benefits are treated differently from others:
some benefits, such as living accommodation, are taxable whenever they are provided to an employee
other benefits, such as cars and medical insurance, are taxable only if they are provided to employees earning at a rate of £8,500 a year or more, or to company directors (regardless of earnings)
non-taxable benefits include drinks and refreshments at work

Is this the answer?

[entrepreneur123]

pls post your accounting questions on accounting forum http://www.spammer.co.uk/ you will get ur answer

It is definitely an accountant thing but would appreciate if some one can guide a bit.
I have transferred my own car to Company's name as I have sent VOS5 registration form to DVLA to transfer it to my company name.
I have couple of questions
-if I give this car to one of employee of my company who uses it for marketing purposes to go on different places then
1- who need to pay "benefit in kind tax which will be calculated through standard process(as given on HMRC website,depending on different factors,Co2 emission,number of days used,registered price etc)
2-are these benefit in kind taxes needs to be paid irrespective of the personal allowance(say for example someone earning less than the personal allowance but uses that car)

Anybody with any suggestion is welcome,,,,I did ask the accountant he said company has to pay benefit in kind tax

[ishfaqsangra]

Thanks a lot sir,have a good day

[suvalike]

Hi folks,

I am using the car for my business trips and car is registered to my brother name but insured for both of us.I am second driver.I am using that car most of the time.If I use the company Business Card for fuel and other associated expenditures, will that be counted towards the Company expenses.

Please clarify.


Thanks

[Wanderer]

Hi folks,

I am using the car for my business trips and car is registered to my brother name but insured for both of us.I am second driver.I am using that car most of the time.If I use the company Business Card for fuel and other associated expenditures, will that be counted towards the Company expenses.

Please clarify.


Thanks

Yes, but you would be liable for BIK and the company would pay EE NI on the BIK too.

The general consensus where one is both the employer and employee is is not worth it - better to claim the 45/25p mileage...

[ishfaqsangra]

@Wandrer can you explain a little bit more of 45/25p mileage? thanks in advance.
I am director and employee of the company as well and I have used company debit card for fuel but has not paid any BIK NI yet,,
1-What is best option for me(my company has already paid Tax and NI employer and employee both)
D0 I really need to fill in P11D or can it be adjusted in some other way?

[suvalike]

Hi folks,

I am using the car for my business trips and car is registered to my brother name but insured for both of us.I am second driver.I am using that car most of the time.If I use the company Business Card for fuel and other associated expenditures, will that be counted towards the Company expenses.

Please clarify.


Thanks

Yes, but you would be liable for BIK and the company would pay EE NI on the BIK too.

The general consensus where one is both the employer and employee is is not worth it - better to claim the 45/25p mileage...

Thanks for your reply. Please can you explain what is BIK and EE NI (i assume Employee NI).

Just to let you know i am just the director of the company but not the employee yet.So should i still keep all the receipts safe for next year tax return.

Thanks