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Company car tax

Discussion in 'SMB' started by offshore, Oct 12, 2017.

  1. Joe Public

    Joe Public Striker

    So pay tax on the allowance, tax on the lease and he can only claim business miles.
     
  2. offshore

    offshore Central Defender

    I don’t want to commit to my own lease because the job might be shite and I bin it lol
     
    Wonderbra likes this.
  3. Philcore

    Philcore Winger

    My sister (no) just got taxed £800 for her new company car, they didnt tell her about until she got paid.. shes skint now until her next pay day..
     
  4. Joe Public

    Joe Public Striker

    “They” didn’t tell her? Her tax affairs are her own.
     
  5. SAFC2403

    SAFC2403 Winger

    Will he be able to claim the full allowance though? I thought if you had either a car or allowance you could only claim the lower amount.

    I got stung for six months worth when i first had a co car. Payroll were useless and ended up paying a de ent wedge back the following year.
     
  6. Goat Eyes

    Goat Eyes Striker

    As said, the tax is worked out based on list price / emissions, most manufacturers will show you the P11D value so you can work out what you’re paying.

    It’s not so straightforward to decide:
    If you take the company car you’ll pay tax at about £100 a month on something middle of the road (without fuel). That covers your mileage, servicing, repairs, VED, insurance etc. Hassle free but no ownership. You’ll be able to claim between 8-12p per mile to cover fuel at statutory rate.

    An allowance gives you ownership but you’ll need to find a deposit for the car, you’ll be taxed on the allowance and you’ll have to cover VED, insurance, repairs, servicing etc. If it’s off the road you’ll get grief from your employer. If you’re doing high mileage it’ll be worth SFA in a few years. You’ll be able to claim 40-45p a mile.
     
  7. Wonderbra

    Wonderbra Central Defender

    Yeah the lease would be shit tax but I get an allowance plus the 45p a mile on my own car. I thought that was standard as it has been 40-45p in last 3 jobs?
     
  8. Philcore

    Philcore Winger

    I meant her employer..
     
  9. legend7

    legend7 Central Defender

    Obviously I just meant say after tax he would come out 300 quid a month better off with his new allowance to remember he is also the company car tax amount better off too if choosing his own car
     
  10. Yellow Wellies

    Yellow Wellies Full Back

    Does anyone have any idea what the likely changes are to diesel cars in the next couple of years (in regards to tax)?
     
  11. Joe Public

    Joe Public Striker

    Not advantageous.
     
  12. Yellow Wellies

    Yellow Wellies Full Back

    I have to order a new company car next year and don't want to be lumbered with a cash cow for the next 4 years if I can help it.
     
  13. THELORDRODWELL

    THELORDRODWELL Central Defender

    Cycle to work scheme instead

    Tax back
     
  14. Patch Lafayette

    Patch Lafayette Striker

    Whenever I’ve had a company car I’ve told the inland revenue myself to save surprises
     
  15. SAFC2403

    SAFC2403 Winger

    Agreed with hindsight but at the time i was young and stupid and thought "great i'm not paying for this!" I now know this to be foolish as the fuckers always catch up with you at some point!

    Mind you even when you do tell the fuckers exactly on the day a new car arrives they still manage to fuck it up and muggins always ends up paying. Mind you i did sting them for £1500 one year which paid for a nice little jaunt to Ibiza :cool::lol:
     
    Patch Lafayette likes this.
  16. HANDSOME_DAN

    HANDSOME_DAN Central Defender

    its really easy.

    whats your take home pay with cash allowance minus the monthly cost of buying and running one plus residual value. whats your take home pay with a company car factoring in fuel either via card or allowance.

    do whats cheapest.

    if you are doing stacks of business miles factor in company car takes out hassle. if its a perk it can be very worthwhile to buy and have a lower mileage assest after a few years.
     
  17. Rick O Shea

    Rick O Shea Winger

    I found this site quite useful.

    http://comcar.co.uk/newcar/companycar/taxcalc/

    You need to go for the lowest CO2 emissions if possible to reduce the % of the list price - the new Astra & Insignia, Skoda Octavia, Fiat Tipo, Hyundai i30 & i40 would all be reasonable options, depending on your budget.
     
  18. HANDSOME_DAN

    HANDSOME_DAN Central Defender

    the tax knock on the car is a factor but its the tco taking into account cash allowance surrendered that matters most
     
  19. bennett83

    bennett83 Winger

    the benefit is worked out on the cars value and co2 and you get more added if you are provided with personal fuel. My last p11d I had £3k added for the small van and another £600 for having a fuel card for personal use. So in other words I got taxed on another £3600. My cars (1.6d mediums estates) used to double that and be something like £120 extra tax taken off per month
     
  20. offshore

    offshore Central Defender

    The i40 estate is a very nice car
     

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