Fleet News

Dealer staff pay BIK on 'average' demonstrators

EMPLOYEES of franchised dealers driving fleet demonstrator cars will continue to pay company car tax based on an 'average' vehicle.

Under the current system, drivers in the retail motor industry who frequently change cars pay benefit-in-kind on a typical vehicle.

This system will continue from April, under the new carbon dioxide-based company car tax regime, despite fears that the Inland Revenue would abolish the administrative concession.

Revenue guidelines advise car dealers to: 'Average the CO2 emissions figures for the cars taken into account in reaching the average price. Use the average CO2 emissions figure to work out the percentage of the price used to calculate the car benefit.'

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment

Comments

No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee