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Original poster

BIK tax for company car vs car allowance on Mat Leave

2 replies

Icamehere4love · 05/10/2023 15:03

Hello

I’m scratching my head in this one!

I have a company car which I pay bik tax on.
I’ll go in mat leave end of this month.
how does it work when I’m on mat leave?
I just get 6 weeks full pay and then 39 weeks at mat pay! So how can the tax office expect me to pay the same bik when my salary drops so significantly?

Is it better to have an allowance?

Thanking you ! Xxx

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PickledPurplePickle · 05/10/2023 15:38

The benefit in kind it based on the value of the car and it being available to you for personal use

They don’t take into account your salary as that’s not their concern

Car allowance is taxable as normal income

Best thing to have a an electric company car

Rayna37 · 05/10/2023 16:06

Yes sadly the tax won't change!

I went back into a private car as my car allowance was generous but maternity leave was only statutory, so it made a big difference over a year. This was only possible though as DH then gave me his car and he bought a runabout to replace it.

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