Taxable wage or taxable gift?
- Thread starter Ice Tea
- Start date
It’s not a wage as no PAYE has been deducted but it would likely need to be declared on a tax return and tax paid on the value of the car.
I say likely as it appears to me that it would not meet the definition of a gift and is in fact in return for services rendered.
I say likely as it appears to me that it would not meet the definition of a gift and is in fact in return for services rendered.
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Soldato
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- 23 Feb 2009
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I'd assume taxable benefit so subject to income tax and NI at the list price of the car. Kind of a silly question though as how the hell are you paying bills with no income. Its a can of worms as were benefits being claimed while doing this unpaid work, if so, were you actively looking for paid work at the time.
if you're going to dodge tax then do it properly and don't declare it
For bonus points, register ownership in a tax haven and consult your local freeman of the land expert for why VED and insurance don't need to be paid for.
if you're going to dodge tax then do it properly and don't declare it
For bonus points, register ownership in a tax haven and consult your local freeman of the land expert for why VED and insurance don't need to be paid for.
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Soldato
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Instinctively this seems like a benefit in kind valued at fair market value and should appear on a P11D.
Alternatively the employer should pay you the exact gross amount required to buy the car at fair market value and you pay the tax. If the intention is for you to have the car they can always pay you am amount sufficient to clear an amount equal to the car value.
Alternatively the employer should pay you the exact gross amount required to buy the car at fair market value and you pay the tax. If the intention is for you to have the car they can always pay you am amount sufficient to clear an amount equal to the car value.
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If you worked for free for an entire year and the company gave you brand new car would that be a taxable wage or taxable gift?
This came up on reddit awhile back and was just a flood of don't declare it.
It would have to be a damn good car.