BIK on Electric Company Car

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Neilc78

Registered User
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32
So in my company I have a choice of getting a company car or alternatively I can have my own car and get paid a car allowance instead.

So with new electric cars being BIK exempt that's a real opportunity for me. However I was wondering if I purchased my own 2nd hand electric car and drew down the car allowance from the company, have I grounds for BIK exemption on that allowance?
 
Of course, your company could buy you a 2nd hand electric car, and the exemption would apply.
 
torblednam said:
Absolutely 100% not.
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Why not. The allowance is for me to buy my own car without being forced to take a brand new one from a lease hire with a big BIK bill. If I buy a 2nd hand electric car why should I not benefit from my decision in The same way I would if I got a new car instead of the allowance?
 
Sorry for jumping in how long does the BIK last for? I thought iwas just one year for EV cars

Thanks
RB
 
RugbyBoy said:
Sorry for jumping in how long does the BIK last for? I thought iwas just one year for EV cars

Thanks
RB
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It was originally announced as 1 year in the budget, but got extended to 4 by the time it made it into finance act.
 
Neilc78 said:
Why not. The allowance is for me to buy my own car without being forced to take a brand new one from a lease hire with a big BIK bill. If I buy a 2nd hand electric car why should I not benefit from my decision in The same way I would if I got a new car instead of the allowance?
Click to expand...

BIK arises when an employer provides something that conveys a benefit but is not of direct monetary value.

A car allowance is just taxable cash which can be spent on a car or a bag of onions.
 
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