Company Car BIK

HowardC

Novice Member
I guess it depends what you are using the car for. I get a car cash allowance on top of my pay, so on one hand I can buy and drive what I like, but I also need something reliable and reasonably fuel efficient now that we're out of lockdown and my business mileage is increasing again. For that reason, the Z4 has gone and been replaced with a new Golf GTD.

Company cars are not quite the perk they used to be, so keeping an eye on the taxation classes and ensuring the right vehicle is declared is essential. When I still had a company car instead of the cash, I got charged for 2 cars and 2 fuel after my main car broke down and I had a hire car for a while. It was only when we realised how much tax I was paying that I started to investigate and unpick things with our compensation and benefits team and the tax man.

BiK is based upon emissions and purchase price, hence the rise in popularity of hybrids. They make little sense to most private buyers, don't really cost much less to run, but remain hugely popular.

If your Astra has a large or inefficient engine, the BiK may be quite high. Quite often hand me down cars fall into this category as managers offload them in order to reduce their own tax with something in a cheaper tax band
Yes my Astra is 1.6 engine size which explains high bik. I get chance in October to choose another car so will go for lower engine and emission size. Will look at hybrid definately. I will also notify HMRC straight away rather than entrust my employer which is what caused this underpayment. If I change jobs I will look at car allowance if I get a choice. My current employer don’t allow alternative. I did think of handing it back and financing my own car to lower my tax.
 

ashenfie

Well-known Member
I did read a report that something like 80% of PHEV never get plugged in as the only reason people have them as they are cheaper on tax.
The company car tax model seam to be still in the 80s, why should a company get preferential taxing rates over a private car.
 

crepello

Active Member
Yes my Astra is 1.6 engine size which explains high bik. I get chance in October to choose another car so will go for lower engine and emission size. Will look at hybrid definately. I will also notify HMRC straight away rather than entrust my employer which is what caused this underpayment. If I change jobs I will look at car allowance if I get a choice. My current employer don’t allow alternative. I did think of handing it back and financing my own car to lower my tax.
Just an observation, but you seem to be focussing too much on minimising your tax paid, whereas you should really be focussing on maximising the cash in your pocket. Obviously they go hand in hand to some extent, but make sure you don't cut off your nose to spite your face
 

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