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I am confused about the treatment of car benefits of work and private use for an employed person.
From the notes:
”The car benefit itself is proportionately reduced if:
? a motor car is unavailable for periods of at least 30 days of the tax year, and
? where the employee makes a contribution to the employer for the use of the motor car”So therefore an employed person will NOT adjust the benefit is they used the car for work for example 5,000 out of 10,000 km was for work?
HOWEVER A SELF-EMPLOYED person will only deduct business proportion of expenses so will adjust only for business.
A CORPORATION makes no such distinction.
Correct?
If an individual works for a company and uses a car owned by the company for private use – irrespective of the amount – then the company works out the BIK and reduces that BIK on those two occasions only – not available 30 days or the employee makes a contrubition each month towards the cost of the car.
Self employed people are using the business vehicle – which technically belongs to them and can only claim business usage.
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