P11D Value affect on leasing

[Fazer321]

Hi All,

I have just ordered a PHEV GX4h as my next company car due for delivery mid March.

I have received a form to complete on behalf of the supplying dealer, which is effectively the "claim back" form for the £5K Government discount.

My question is, as the Car will be leased by my Company:

Who will benefit from the £5k discount ?

I have checked the P11D value on the lease form, (on which the BIK Taxation is based), and that clearly states the full list price, NOT the post discount value....

I would appreciate any views on this question please.

Many thanks

 

[jthspace]

The benefit of the discount will go to the company purchasing the car, either your company or the lease company. It is a UK Government "grant" of up to a maximum of GBP5,000 (or 35% of the value). This is to offset the higher cost of the vehicle vs a petrol or diesel vehicle and to encourage sales.

https://www.gov.uk/plug-in-car-van-grants/what-youll-get

Benefit in Kind applies to the full price of the vehicle and any accessories purchased at the time.

Jeff

 

[outofyorkshire]

Yup just what Jeff says :shock:

 

[Fazer321]

Hi All,

Thanks very much for the replies - fully understood.

Still, I am a little disappointed that the Grant does not have any affect on the P11D Value for Tax purposes, it is a Government based offer after all.

Thanks again.

 

[greendwarf]

Hi All,

Thanks very much for the replies - fully understood.

Still, I am a little disappointed that the Grant does not have any affect on the P11D Value for Tax purposes, it is a Government based offer after all.

Thanks again.

You're right. the BiK calculation for anything provided to you be your employer is supposed to be based on the cost to the employer of providing it to you. For example, I paid no tax on a free 'phone line from BT when I worked there because it cost BT nothing (an interesting point for all you Telco customers :lol. So, in theory, the figure ought to be post-discount.

However, common BiK items - such as cars - will be subject to individual rules. No doubt the Revenue will argue that it is also the value to you that you are being taxed on and that therefore, it is always the list price that is used to stop any inventive financing packages to get round the tax. They would also probably argue that the grant is post-purchase and that as the grant is being reduced this also means consistency between tax payers for the same item.

 

[Mitssupplier]

Hi All,

Thanks very much for the replies - fully understood.

Still, I am a little disappointed that the Grant does not have any affect on the P11D Value for Tax purposes, it is a Government based offer after all.

Thanks again.

Whilst as a company car driver I agree it would be nice to have the P11D on the discounted price - Grant, discount or both but I guess its to keep the process consistent as all purchase prices would vary greatly.