redundancy + car benefit tax

Apr 08, 2004 4 Replies

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David 22 years ago

Hi,

I'm about to be made redundant, and I have a company car. I will be entitled to a month or so pay in lieu of notice as I'm a long serving staff member, and have to hand the car back when I officially leave. The company have said that they will pay "A benefit" for loss of use of the car for the pay in lieu of notice period, but have not stated how they will calculate this (along with LOTS of other stuff - long story).

I was wondering if there was a standard way to calculate the above. I am guessing that a fair way would be to take the figure that the revenue put as car benefit on your annual tax coding statement, divide by 52 and multiply that figure by the number of weeks they are paying me in lieu of notice.

Is there a standard way of calculating what is owing, or can they just pluck a figure out of the air?

Thanks

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Doug Ramage 22 years ago

Or the rental payment under Contract Hire/PCP for a month? Plus any "free" petrol?

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Richard Buttrey 22 years ago

In the absence of a specific statement about the car in your contract of employment, then the answer is no, there is no such thing as a standard method of calculating this.

Rgds

Richard Buttrey Grappenhall, Cheshire, UK __________________________

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John Smith 22 years ago

Sorry to hear about your redundancy - can I ask in what profession it is? Just trying to get a feel for the UK job market? Apparently we have never had it so good!

John.

"Richard Buttrey" wrote in message news: snipped-for-privacy@4ax.com...

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derek 22 years ago

Your statutary entitlement to rendundancy pay is *in addition to* pay in loo of notice.

No they have to negotiate this with you.

Remember that this payment, negotiated at leaving time, as part of your "leaving payment" should be paid tax free and also remember to tell the revenue that your car benefit ceased the instant you handed the car back.

HTH

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