AM Online

Dealer staff to continue paying BIK on demonstrators

The Inland Revenue has confirmed that franchised dealer staff driving fleet demonstrator cars will continue to pay company car tax based on an 'average' vehicle.

Under the current system, drivers in the retail motor industry who frequently change cars pay benefit-in-kind on a typical vehicle.

This system will continue from April, under the new carbon dioxide-based company car tax regime, despite fears that the Inland Revenue would abolish the administrative concession.

Revenue guidelines advise car dealers to 'average the CO2 emissions figures for the cars taken into account in reaching the average price. Use the average CO2 emissions figure to work out the percentage of the price used to calculate the car benefit'. (December 20, 2001)

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