PUC and BIK - erm what????

Soldato
Joined
12 Jul 2005
Posts
3,912
Could someone kindly tell me how Personal Usage Contribution works in relation to Benefit in Kind Tax?

Im about to order a new company car - my max PUC is £175 PCM.

Im trying to understand if the PUC is deducted from the BIK?

help!
 
Soldato
OP
Joined
12 Jul 2005
Posts
3,912
So as a higher rate tax payer, my combined puc and bik is around £450 per month.

Am I correct that it will therefore cost me the BIK(£450) minus the PUC?(£175)

I.e £275 per month?
 
Soldato
Joined
5 Mar 2009
Posts
3,050
Location
North
If the PUC is a revenue contribution then it would be BIK - PUC on a monthly basis. I would guess it is a revenue contribution as it's a monthly contribution compared to a capital contribution which is a one off at the time of purchase which reduces the BIK permanently from the get go.
 
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