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Posted 4 months ago by mike79
I have recently accepted a company car and am looking to update my tax code to take account of this change. I have paid for some additional accessories that I am including in the 'Did I Pay Anything After Tax, Towards the Car' section of the updating my tax code HRMC pages. However, Im also paying £151.40 per month to Trade Up to this vehicle. This works out at £1817 per year that I am paying to my employer as a contribution towards the capital cost of the vehicle (after tax). This payment is not related to personal use. Given this is a capital contribution towards the cost of the vehicle can I include this £1817 in the 'Did I Pay Anything After Tax, Towards the Car' section in my HMRC tax code update?
Posted 4 months ago by HMRC Admin 19 Response
Hi,
Capital contributions are payments made towards the cost of the car or any qualifying accessory and are deducted from the car’s list price when calculating the benefit-in-kind (BIK) value, this is a maximum of £5000. Since your payment is not related to personal use but is a contribution towards the capital cost, it should be included in this section. You can see guidance here:
Tax on company cars
Thank you.

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