Click me
Transcript

A Guide to BIK

NEXUS Vehicle Rental A GUIDE TO BIK If your employees use a rented vehicle for anything more than incidental private use, they may be liable to pay benefit-in-kind (BiK) tax. Here we take a look at what BiK is, how you can calculate the Bik value for a vehicle and how the tax applies to vans. Benefit-in-kind is a tax usually levied on people receiving extras in addition to their salary as part of a remuneration package. WHAT IS BIK? It also applies to vehicles which are rented and made available for private use (i.e. a vehicle you also use outside of work). First you will need the car's P11D value, a 1+30 - 2% number which takes its name from a form used by the tax office. HOW IS BIK CALCULATED? The P11D value of the car is made up of the list price (including VAT), in addition to any delivery charges. It does not include the first registration fee or annual road tax. The P11D value must be multiplied by the vehicle's percentage banding. VOLKSWAGEN GOLF This is a value based on how much S1.6 TDI 5-door CO2 the car emits. You can find a car's percentage banding with a quick search on the internet. Below we calculate the Bik value for a Volkswagen Golf S 1.6 TDI 5-door. P11D 106g/km BiK BAND 23% CO2 VALUE £20,370 BİKVALUE P11D BiK BAND BiK £20,370 x 23% = £4,685 X VALUE VALUE As of April 2018 BiK may be applied to personal use of a company van at a base rate of £3,350 (£646 for electric vans). This will depend on how often the van is used. Taking it home may be okay, but using it at weekends or outside of work may incur Bik tax. You can calculate your Bik value by multiplying £3,350 by your income tax banding (either 20% or 40%). WHAT ABOUT BIK FOR VANS? Nexus is the UK's leading tech-driven business mobility provider. Its team has nearly 20 years' experience as pioneers in developing innovative technology to make business mobility efficient and effective. Nexus' revolutionary online rental booking and management platform, IRIS, developed in-house by a specialist IT team, is central to the company's success. The system allows business customers to access over 550,000 vehicles, including 100,000 specialist and commercial vehicles and 50,000 HGVS, across more than 2,000 UK locations. Nexus can source any vehicle, anytime, anywhere, and can usually deliver within two hours of a booking being made. Contact Nexus today: www.nexusrental.co.uk in

A Guide to BIK

shared by ObjectiveCreative on Nov 12
17 views
2 shares
0 comments
If your employees use a rented vehicle for anything more than incidental private use, they may be liable to pay benefit-in-kind (BiK) tax. Here we take a look at what BiK is, how you can calculate th...

Category

Other
Did you work on this visual? Claim credit!

Get a Quote

Embed Code

For hosted site:

Click the code to copy

For wordpress.com:

Click the code to copy
Customize size