Company car or payrise?

Em Xx

Em Xx

Em Xx

Associate
Joined
12 Sep 2010
Posts
153
Location
Melton Mowbray
I've been offered a promotion as 'Office Manager' at work which I'm delighted about but my boss has said that I can either have a company car or a payrise to go with the promotion. I haven't yet passed my driving test (failed twice!) but this promotion won't happen until August anyway.

- A company car will involve a new or new-ish car, insurance, tax, mot & fuel etc. Plus the ability to use it at my own leisure.
-A payrise would be around £1,500 pa.

The only thing I have concerns about is that I'll end up being majorly taxed if I have a company car? And I don't think I'm entitled to earn my own no claims?

I'm almost 23 and I've been getting a few quotes for car insurance - it's looking like I'll have to pay around £950 a year on a 1.4 Peugeot 206.

Any advice would be much appreciated
 
ask for the money for the car if possible, it will let you get a nice car and be worth more to you than £1500pa
 
[TW]Fox;18701118 said:
I imagine this is what she means by a payrise - as a car allowance is basically just that, an addition to basic salary.
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maybe, im going with what she said though, as £1500 over 12 months isnt much to go out and get your own car...
 
You will be taxed on a company car if you don't do the mileage. Additionally you will not have any NCB when you finally wish to get your own car.

I'd go for the money rather than the car.
 
If investing in a car and insurance is what you'll be looking at anyway, I'd take the company car providing it covers personal use, too. Which I presume it will?

Unless of course, the additional salary will be of more use to you? But it's really not much when running a car is concerned.
 
NickK said:
You will be taxed on a company car if you don't do the mileage. Additionally you will not have any NCB when you finally wish to get your own car.

I'd go for the money rather than the car.
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I dont know that mileage comes into it any more. It is all emissions and list price based. The three mileage bands disappeared in 2002.

Company Car Tax details from the AA

As to whether to take the money or not depends on the car they offer and also if you are in the higher tax bracket or not.
 
Personally, I'd take the car, there is still taxation on company cars, although, I doubt it will affect you, as your car will prob be "low cost".

Also, be aware, "at your own leisure" will be at your cost, you'd have to do the whole company mileage and personal mileage thing. Unfortunately, I don't know the in's and out's of this, but I'm sure there are other's on here that do.
 
Need more info

If the company are willing to wave the tax liability of a car then a c car is a no brainer, if they want to give you a car in lieu of a pay increase and then make you pay the tax then you need to do the maths.

Depends on what car and how many miles you do atm
 
I'd be using the the £1,500 to fund a car, insurance, tax & mot etc so yeah I'd be needing it to pay for car in the first place.

Yeah I am allowed to use the company car at my own leisure as and when I want to.

Any idea what the tax percentage is for the car plus the mileage, the percentage that I'd have to pay?
 
Company car tax depends on the company car tax band the car falls into - this depends on the cars CO2 emissions.

Given they are only offering £1.5k in cash instead of a car I get the impression he isnt about to offer you an Audi A6, so on the sort of entry level cars ie Ford Fiesta you will probably be paying about £40-50 a month in tax, and about the same again on the fuel card?
 
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