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bigduckontax
bigduckontax, Accountant
Category: Tax
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Company Car Tax Question If I took out a car lease through

Resolved Question:

Company Car Tax Question
If I took out a car lease through the company I work for, but paid the full monthly lease amount directly from my salary, am I correct in thinking there will be no tax liability as there is no BIK?
Also, could the amount be taken from my gross salary, pre tax and NI?
Many thanks
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. I agree that in this case no benefit in kind is created with this transaction, the company merely acting in a banking capacity. Be careful, however, that this is not classified as a salary sacrifice which would complicate the process. Taking it from your gross salary pre-tax and NI would be such a sacrifice and you would be taxed on the gross anyway. Just allow tax and NI to be applied to your gross and then repay the company by a deduction from your emoluments. I do hope that my reply has been helpful.
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.