Company car Tax

[thebook]

Sorry if this has been asked before, but I have a quick question.

A friend of mine has been provided with a company car and been given a taxable list price by the lease company.

This is more than the standard list price as the car has extras on it. The taxman asks for the value of accessories.

Does he:

(A) Just provide the taxable list price and say no accessories

or

(B) Does he say the entry list price and add up the accessories

Finally, does it make a difference either way?

Thanks in advance

 

[ashadam]

Surely option A would be Lie?

 

[isleaiw]

Sorry if this has been asked before, but I have a quick question.

A friend of mine has been provided with a company car and been given a taxable list price by the lease company.

This is more than the standard list price as the car has extras on it. The taxman asks for the value of accessories.

Does he:

(A) Just provide the taxable list price and say no accessories

or

(B) Does he say the entry list price and add up the accessories

Finally, does it make a difference either way?

Thanks in advance

Is it not the case that accessories are things added after the vehicle arrives at the dealer within the first 31 days of ownership?

they are also taxable but will not be included in the list price of the car with extras from the factory. It is to ensure that you have to answer the question and sign your life away about whether you have added anything afterwards that should be part of the taxable benefit.

Ian

 

[Dryce]

I think you'll find that the taxman doesn't care as long as the single overall 'list price' (your option A) or the 'entry list price + accessories price' (your option B) is consistent.

My recollection is that they only want the accessories value separately if they have been excluded from the list price you give them or added separately so aren't part of the list.

 

[thebook]

Thank you, my friend is of the view that the base list price + optional extras adds up to the taxable list value as supplied by the lease company. Nothing was added at the dealers.

Thanks again.

 

[bobbersmill]

Thank you, my friend is of the view that the base list price + optional extras adds up to the taxable list value as supplied by the lease company. Nothing was added at the dealers.

Thanks again.

He needs to record the list price excluding any options and then the cost of options fitted to the car at the time of delivery to the employee. The entries on a P11d need both or should I say ask for both.
You should record the list price including Vat, delivery charges and road tax if applicable.

 

[gIzzE]

Did he get a discount?

Is it contract hire or lease purchase?


I would just put down the list price of the car and not mention any options.
Unless of course it is a lease purchase and he paid above list.

 

[bobbersmill]

Did he get a discount?

Is it contract hire or lease purchase?


I would just put down the list price of the car and not mention any options.
Unless of course it is a lease purchase and he paid above list.

The actual price paid does not determine the bik it's the list price plus options. The bik rules are pretty clear. HM Revenue & Customs: CCF-Session Ended.

 

[gIzzE]

I know the rules. They stink.

I am just saying what I would do, not what I should do.

 

[bobbersmill]

I know the rules. They stink.

I am just saying what I would do, not what I should do.

My apologies.

 

[gIzzE]

I just think if you buy a new car as a company car you need to get the dealer to give all the discount on the options, this helps out massively on some cars.

BMW 520d auto £33000.
Media pack £2000
Xenons £600
Hi-Fi £400

Total £36000.
Discount £3000.

So invoice it at £33000 for car and options at £0.

This means you are only taxed on the £33k.

If you get the car for £31000 and then the options for £2000, you are taxed on the £33k list and then £2000 worth of options, so £35000.


Just have to be a bit smart with the invoicing.

 

[Dieselman]

Surely his employer will declare the full value on the P11D, so declaring anything different now will just lead to problems and a greater tax charge later on.

 

[ashadam]

Surely his employer will declare the full value on the P11D, so declaring anything different now will just lead to problems and a greater tax charge later on.

I would of thought that standard for a company car as they would surely declare it.

 

[thebook]

Surely his employer will declare the full value on the P11D, so declaring anything different now will just lead to problems and a greater tax charge later on.

His employer stated the tax list price is the figure to quote (inclusive of optional extras) hence the degree of confusion.

 

[bobbersmill]

Unfortunately pub talk dictates in these scenarios.
The reality is that chances are you won't get caught but like driving without insurance, is its really worth the risk?

 

[Dieselman]

His employer stated the tax list price is the figure to quote (inclusive of optional extras) hence the degree of confusion.

Unfortunately pub talk dictates in these scenarios.
The reality is that chances are you won't get caught but like driving without insurance, is its really worth the risk?

I don't see any confusion. The employer is going to declare the full price including options.
To declare anything different would be A: fraud and B: bound to be caught out.

 

[thebook]

To get back to my original issue, what is the difference between tax list price (including all optional extras) and base list price plus optional extras?

Do optional extras get taxed at a different rate?

Thanks to everyone who has answered thus far

 

[Merc Owner 2B]

Can't see the difference myself. Tax rate for car and accessories are the same and based on the emissions of the vehicle.

 

[bobbersmill]

To get back to my original issue, what is the difference between tax list price (including all optional extras) and base list price plus optional extras?

Do optional extras get taxed at a different rate?

Thanks to everyone who has answered thus far

HMRC will take the manufacturers list price plus options. Sites like Comcar Company car tax tools are a usefule reference tool if you are struggling to find the list price. It also calculates the BIK for you so well worth a look.
They are both multiplied by the same % appropriate to the cars Co2 emissions.