I’m sure that most of you will have the provisions of Sch 2, Finance Act 2017 safely under your belts. The year’s grace that allows most existing BiKs (acquired before April 2017) to apply for 2017-18, comes to an end 6 April 2018.
But what if there was no agreement?
However, I can find nothing in the legislation, or professional commentary, that clarifies if the new rules apply if there was no formal salary sacrifice agreement (contract) created when the BiK was granted. Do we assume that if there is no formal salary sacrifice agreement, then Sch 2 Finance Act 2017 does not apply? Readers that have a definitive answer to this conundrum please post a comment to this blog post or email me at firstname.lastname@example.org.
Most of my director shareholder clients that have BiKs do not have contracts of employment – otherwise there would be NLW considerations – and very definitely were not party to formal salary sacrifice agreements when they acquired mobile phones or purchased a company car.
Tax planning tips video 2018
Good luck with 2017 returns, and if you have a moment to turn your attention to tax planning for clients before 6 April 2018, our latest TaxBox video “Tax planning tips” will be available this month. To register your interest complete reservation form.