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BIK Implications of "free" car

I have been offered free use of a brand new car for 12 months by a motor manufacturer. I can opt out of my current company car scheme and take the money and petrol allowance etc then provide my own vehicle for daily use.

This would normally be done by me buying/leasing my own vehicle. However due to my job I have links with manufacturers, one of whom has suggested lending me a vehicle for a year at no cost, which I would pay to fuel and insure.

What would the tax implications of this be, obviously noting the fact that if I didn't do the job I do I wouldn't get this offer.

If I was to pay them a nominal sum of say 100 per month for the use of the car would this help at all?

Thanks.

Reply to
Billywhizz
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I'm not sure specifically but the motor trade has odd rules

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gives the basic rules and
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has some specifics. In particular this section might be relevant:

11.10 The use of test or experimental cars by engineers in both the motor and components industries will be considered in the light of the particular facts of the case by the Inland Revenue office dealing with the tax liabilities of the employees concerned, but broadly any private use of the test or experimental car by the employee will result in the imposition of the appropriate car benefit charge.

Ask the supplier, if they've done it before they may be able to tell you. My guess would be whatever their 12,000 mile per annum cheap credit deal would cost to be a reasonable starting point, however the revenue may want to start on the same basis as if you were their employee.

Reply to
Peter Ibbotson

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