Company Car Tax

CoxyBoy123 · 30 Mar 2011 at 13:15

Hi All,

There is a possibility that I will be getting a Vauxhall combo as a company car. How much would i have to pay a month for this with fuel allowance?

What differences would it make to my tax code which is currently 647L

Myshra · 30 Mar 2011 at 13:21

Use a company car calculator, the car company you are getting it through will have one. I feel the need to ask for some reason, why a van for a company car?

CoxyBoy123 · 30 Mar 2011 at 13:25

Myshra said:
Use a company car calculator, the car company you are getting it through will have one. I feel the need to ask for some reason, why a van for a company car?

Thanks for the response.
What about tax code?

With the products we deal with it can all be last minute, so offering the customer the chance to bring them the products is a good reason to go see them.

Plus it fits in with my hobbies

[GSV]Lemming · 30 Mar 2011 at 14:57

Once you know what the the car charge will be you can take it off your tax code...

The tax code basically means you get £6479 before tax spread over the year. Car benefit charges will reduce this figure.

[GSV]Lemming · 30 Mar 2011 at 15:05

http://www.hmrc.gov.uk/rates/travel.htm

Assuming you get a new van then next year will cost you £3000 for the van, £500 extra if the company pays for fuel which you use for private purposes.

Assuming you just have a van, then allowances will be 6479-3000= 3479. New code 347L

The last digit is always ignored and rounded up in your favour.

CoxyBoy123 · 30 Mar 2011 at 15:14

[GSV]Lemming;18790000 said:
http://www.hmrc.gov.uk/rates/travel.htm

Assuming you get a new van then next year will cost you £3000 for the van, £500 extra if the company pays for fuel which you use for private purposes.

Assuming you just have a van, then allowances will be 6479-3000= 3479. New code 347L

The last digit is always ignored and rounded up in your favour.

You get it to £291 per month,

http://www.parkers.co.uk/company-ca...te=22&year=2010&p11d=0&model=1625&deriv=38174

This got about 85 :/

merlin · 30 Mar 2011 at 15:16

£3,000 is the reduction in the tax allowance not the actual cost.

See www.comcar.co.uk for a proper calculation.

[GSV]Lemming · 30 Mar 2011 at 15:24

I should have made it clearer, but without confirming your income I cant be sure of the tax cost to you in £s and pence. Hence I showed you the effect on your tax code as per your request.

The calc merlin linked to will show you the exact cost.

CoxyBoy123 · 30 Mar 2011 at 15:26

merlin said:
£3,000 is the reduction in the tax allowance not the actual cost.

See www.comcar.co.uk for a proper calculation.

That came out at £112 per month, is this accurate?

CoxyBoy123 · 30 Mar 2011 at 15:30

[GSV]Lemming;18790152 said:
I should have made it clearer, but without confirming your income I cant be sure of the tax cost to you in £s and pence. Hence I showed you the effect on your tax code as per your request.

The calc merlin linked to will show you the exact cost.

Okidoki thank you, 12k p.a. you can try it and see if you come out with anything different, would be looking for fuel benefits

Lum · 30 Mar 2011 at 16:13

Your main question has been answered, but let me give you a word of warning.

Latest word from out fleet department is that HMRC are taking ages to process company car notifications as they basically pile them up and do them in batches now. That can you result in getting shafted for tax when they finally do it.

Recommended practice is to ring them up as soon as you get the van and give them the details over the phone so that they can update your tax code immediately and spread out the payments over the rest of the year.

CoxyBoy123 · 30 Mar 2011 at 16:20

Lum said:
Your main question has been answered, but let me give you a word of warning.

Latest word from out fleet department is that HMRC are taking ages to process company car notifications as they basically pile them up and do them in batches now. That can you result in getting shafted for tax when they finally do it.

Recommended practice is to ring them up as soon as you get the van and give them the details over the phone so that they can update your tax code immediately and spread out the payments over the rest of the year.

Thank you for the heads up

ShadowMan · 30 Mar 2011 at 16:33

It certainly can sting. I have had notification of change to tax code to repay £330 of company car tax from a job I left over a year ago. Next years code will be a low one even though I do not have a company car anymore!

Still as it is classed as a commercial vehicle and not a car being a van the taxable amount is pretty static and if fuel is included and you do a lot of miles then your total outgoing per month will be low compared to a private vehicle imo.

Best to do the calcs with the above calculators however on your own circumstances.

CoxyBoy123 · 30 Mar 2011 at 16:43

Well the fact is, I am gonna struggle to pay for my insurance next year, and I do 2000 miles a month easy