Will I pay BIK/ Company car tax on SMP?

[sianyb83]

I currently pay £160 a month for my company car in BIK tax. After 6 weeks on 90%, I will be on SMP for the remainder of my mat leave (taking about 6 months).
Am I right to think I won't be paying BIK tax in this period (on SMP) as it won't hit the threshold?

Watching as I have the same question! Thanks for posting this.

Since you won’t be working and therefore not earning for your company, I can’t see that you’d be reimbursed by the company who pays the tax....so you’d be liable for it yourself, from SMP or otherwise.

But I’m absolutely shooting from the hip here, no experience whatsoever. You’d be best placed calling your company HR or HMRC direct...

If you're keeping the car or using BIK during this period I think you would pay, or it will come out of your tax free allowance. I'm on a car allowance and will continue to be paid it during smp leave. Best check with your HR Dept.

Well the personal allowance is £12,500/year or £1042/month. Statutory maternity is £148/week which is about £600/month. If you are basic rate tax payer, the benefit on the car will be £800 so there will be tax deducted from your SMP.

But less than £160/month

But less than £160/month

If you aren’t earning enough for it to be patyrolled it will go on your P11D

I think as I'll be 7 months into the tax year I will have already paid enough BIK...
as usually I'm a 40% tax payer, so pay the higher rate of bik for the car, but then year - because of going on SMP mid-tax year, I will be just under the threshold.
For example, I pay 2000ish a year in BIK for the car (its a hybrid), but if I was a 20% tax payer if would be less than 1000. But the time I go on mat leave I will already have paid 900 in BIK.