In today's challenging economic climate, reducing expenses and tax liabilities is critical for businesses and households alike. The article focuses on how to select a business vehicle lease that minimizes tax exposure, emphasizing the significance of understanding Benefit in Kind (BiK) tax, which applies to company cars. By explaining how BiK is calculated based on salary and vehicle value, the piece provides insights into the financial implications of leasing versus buying a car outright, stressing the importance of making informed decisions in financing strategies.
Finding ways to reduce outgoings, economise, and minimise tax exposure has perhaps never mattered more for businesses than it does right now.
Benefit in Kind (BiK) is a tax an employee has to pay on a car or other type of vehicle that they are given by their employer.
The total amount you will pay is determined by the size of your salary and the overall value of the vehicle.
This is where you pay a far smaller initial amount than if you were purchasing it outright, followed by a fixed set of monthly payments.
Collection
[
|
...
]