Contra of BIK

burg
burg Moderator, FMAAT, AAT Licensed Accountant Posts: 1,441
Excuse what follows but I'm pretty sure on my answer.

A client has come to me from a previous accountant. He has a car in his company. The cash equivalent value for BIK's is c£1000, fine.

However, the client thinks this has never been declared and is certainly not on his last ITR, OK.

The reason he thinks not is because his previous accountant has told him he could simply deduct the BIK cash equivalent value from his actual motor costs in the accounts and thats it accounted for.

Now I may be missing something somewhere but this is just pure nonsense isn't it?!

NB - The car is definitely a company car its owned by the company and CA's have been claimed.
Regards,

Burg
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