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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15950
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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, My company deduct the cost of a lease car from my salary,

Customer Question

Hi,
My company deduct the cost of a lease car from my salary, (bad credit history prevented me from being able to do this in my own right), my tax code reflects that I have a company car, is this correct?
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

Can you confirm that when the lease is paid up and you have completed the repayments will the car be put into your name?
Customer: replied 2 years ago.

No the vehicle will be returned to the Finance House.

The lease was effected in April 12, and runs to March 15.

Expert:  TonyTax replied 2 years ago.
Thanks.

Leave this with me while I draft my answer.
Expert:  TonyTax replied 2 years ago.
Hi again.

As the lease is in your employer's name and assuming the car is available for private use, there is a benefit in kind. However, if you make a contribution to the company for the private use of the car, you should get a deduction from the car benefit scale charge on a pound for pound basis.

It would be helpful if there was documentation which said that you would make a monthly contribution to the company through your salary for the private use of the car to avoid problems.

Call the tax office on the number here, tell them that you make a contribution for the private use of the car and have them take account of that sum in calculating the car benefit.

I hope this helps but let me know if you have any further questions.
Expert:  TonyTax replied 2 years ago.
Hi again.

Take a look at the notes here which confirm that the monthly payment you make through your salary can be deducted from the car benefit. Use the car benefit calculator here to work out what your car benefit should be.