quick question for anyone with a company car



Spennymackem1981 said:
what the fuck is benefit in kind and how much more tax do you end up paying for having one
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I've had a company car the last 10 years, if your not careful is screws up your tax, once you get it, let the HMRC know asap

The BIK all depends on the cost of the car, you can check online how much tax you will pay for the car, as it changes each year.
 
kossoff said:
What company car are they offering in Afghanistan? Hummer?
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still waiting on the afghan job...the Sunderland one comes with a company car, i just wondered how the tax works out if its gonna be £3k a year for example i might as well tell them to fuck off and use my own motor and just claim mileage back
 
Spennymackem1981 said:
still waiting on the afghan job...the Sunderland one comes with a company car, i just wondered how the tax works out if its gonna be £3k a year for example i might as well tell them to fuck off and use my own motor and just claim mileage back
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Get the company car then drive it to Afghan. They won't follow you
 
according to the contract i can choose a grade c or g company car to the value of £25 k blah blah blah you must pay income tax as a benefit in kind doesnt mention tax on the fuel :/

thing is i took out car finance when i started here as we were told about 2 years work at least
 
Spennymackem1981 said:
according to the contract i can choose a grade c or g company car to the value of £25 k blah blah blah you must pay income tax as a benefit in kind doesnt mention tax on the fuel :/

thing is i took out car finance when i started here as we were told about 2 years work at least
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So, basically HMRC will have a BiK value for the car based on the list price of the car and the C02 emissions, assume the value is £3k you pay tax at your normal rate on that. If you are provided fuel for personal use they'll also tax you on a set value for this. I'd look into the fuel element, some of our Sales Managers dropped out of having the fuel because they were getting taxed about £150 per month and not doing anywhere near the amount of personal miles to warrant that value.
 
No. 1 is Gary Rowell said:
So, basically HMRC will have a BiK value for the car based on the list price of the car and the C02 emissions, assume the value is £3k you pay tax at your normal rate on that. If you are provided fuel for personal use they'll also tax you on a set value for this. I'd look into the fuel element, some of our Sales Managers dropped out of having the fuel because they were getting taxed about £150 per month and not doing anywhere near the amount of personal miles to warrant that value.
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so would it be better to choose a car with low emissions should i decide to do one, id rather just get mileage for my box of shite
 
See what cars are offered in your category, then go on the manufacturer website and get the BIK figures. These are essentially a calculation of what HMRC calculate the benefit be worth per year and they then say what the percentage of tax is that you should pay on this benefit. E.g. if they calculate that a Golf xxx is worth £6000 a year to you and the BIK is set at 18% your tax code will be adjusted to deduct 18% of the 6k from your salary each month. So £1080 / 12 = £90 a month.

The bigger the list price and higher the emissions the higher both the value and BIK will be calculated at. Electric and hybrids tend to have favourable rates.

This rises steeply if you add fuel but unless you do a lot of personal miles it probably isn’t worth it.

As you have your own car, ask for an allowance from them, £5k a year is about standard for what you have. You may need to add business miles to your insurance and wear and tear will increase but calculate if it is worth it.

I do high miles so 5k allowance wouldn’t get close for me but a company car works perfect.
 
Goat Eyes said:
See what cars are offered in your category, then go on the manufacturer website and get the BIK figures. These are essentially a calculation of what HMRC calculate the benefit be worth per year and they then say what the percentage of tax is that you should pay on this benefit. E.g. if they calculate that a Golf xxx is worth £6000 a year to you and the BIK is set at 18% your tax code will be adjusted to deduct 18% of the 6k from your salary each month. So £1080 / 12 = £90 a month.

The bigger the list price and higher the emissions the higher both the value and BIK will be calculated at. Electric and hybrids tend to have favourable rates.

This rises steeply if you add fuel but unless you do a lot of personal miles it probably isn’t worth it.

As you have your own car, ask for an allowance from them, £5k a year is about standard for what you have. You may need to add business miles to your insurance and wear and tear will increase but calculate if it is worth it.

I do high miles so 5k allowance wouldn’t get close for me but a company car works perfect.
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i asked this and it got turned down the reason was because of the mileage i didn't really understand that response

I’ve checked with HR and my manager and I’m afraid that we’re not able to offer the car allowance for this position as the annual mileage will be too high. Hopefully that will not put **** off.
 

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