Company Car BIK when longterm sick?

POD1

Registered User
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Hi I am longterm sick since Dec08 to now and will probably be off for at least 6-12 more months due to illness.

My company left me my company car, as I have good record, etc
I am single so car is not being used for family purposes. Sometimes if i feel well I will drive to hospital or shop, otherwise a brother or parent drive me.

I normally do 30K+ plus per year however now I am mostly housebound so will only do a few thousand miles for 09. I had not even thought about this until today when I recieved an email from payroll , administered from the UK I just recieved this email to the effect:

178.29 car BIK per month to day. As things stand this will go through payroll for him in October also. Therefore his outstanding BIK for the tax year will be 9924.00, calculated as follows:-



Car value = 39023.00

30% of car value (total annual BIK payable) = 11706.90

Car BIK applied Jan - Oct = 1782.90

Outstanding = 9924.00

They are saying I owe the revenue 9924 surely this can not be right when I am sick and practically incapable of driving

I am on an income protection of 75% wages ( government cheque sent back to company then insurance company pay remainder of 75% this is then paid to me via company payroll)

Can anybody help me out here? I simple cannot afford this and I live in the countryside so for as little as I drive it the car is useful and gives me a little independance?
 
Sorry to hear about your illness.

As I understand it as your business mileage went down, your BIK apportionment went up. This is simply how the BIK calculation works, I don't know of a way around it.
 
You don't owe the Revenue €9924; you will have to pay the tax on €9924. That's not quite as bad.

I hope you get over your illness soon.
 
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