Company Car Tax, is this all I pay?

Ahleckz · 3 Oct 2016 at 17:55

My car is due an MOT tomorrow, it's going to fail, and I want something different so I'm thinking about joining the company car scheme and get a Renault Kadjar Dynamique Nav DCI 110.

No one at work can seem to give me a straight answer and the websites I've consulted just confuse me!
But am I right in thinking that this means I'll pay £849.60 a year in tax?

Is that just taken off as a deduction each month? Will my tax code change? Will there be any extras in there (I understand my employer will charge around £20 a month for insurance, but struggling to find out anything about that either!).

Are there any other costs to know about? (I won't have a fuel card, and I won't be using the car for business purposes. It's purely committing and personal use).

[TW]Fox · 3 Oct 2016 at 17:59

Yes, that is all you pay in terms of tax. As to what your employer may or may not charge only they can tell you that.

Yes, your tax code changes to ensure that £849.60 is taken from you.

rodenal · 3 Oct 2016 at 17:59

Do you currently receive a car allowance? If not what is the "cost" of taking the car, is it a salary sacrifice or the likes?

Ahleckz · 3 Oct 2016 at 18:08

[TW]Fox;30067599 said:
Yes, that is all you pay in terms of tax. As to what your employer may or may not charge only they can tell you that.

Yes, your tax code changes to ensure that £849.60 is taken from you.

Aye, I meant I was struggling to find info about it from the company intranet. My manager said "no idea how much you'd pay, and I don't think anyone really understands it." Helpful!

rodenal said:
Do you currently receive a car allowance? If not what is the "cost" of taking the car, is it a salary sacrifice or the likes?

Yea, salary sacrifice. £1800 drop, plus the tax so I'm weighing up to see if it's worth it. I'm leaning towards not doing it and just paying to change my car. But then again, I like the ease of it and I could change car every few months.

At the minute, I own my car outright and only pay £295 a year VED and around £450 for insurance. Do I want to pay around £220 to drive a Kadjar...

[TW]Fox · 3 Oct 2016 at 18:10

Ahleckz said:
I like the ease of it and I could change car every few months.

I'd be amazed if any company car scheme lets you change cars every few months! You'll be stuck with it for the duration of whatever lease your company opts for.

LiGhTfasT · 3 Oct 2016 at 18:11

The £2124 may also put you over some tax credit thresholds too.

Ahleckz · 3 Oct 2016 at 18:12

[TW]Fox;30067625 said:
I'd be amazed if any company car scheme lets you change cars every few months! You'll be stuck with it for the duration of whatever lease your company opts for.

I work for a major car sales dealer, so we basically get whatever we have in pre-registered stock and keep it until we can sell it.

[TW]Fox · 3 Oct 2016 at 18:14

Ah fair enough, that sounds a bit different then

Are you a 40% or a 20% taxpayer? It's £424 if you are a 20% taxpayer.

rodenal · 3 Oct 2016 at 18:17

If there's salary sacrifice plus the cc taxation it doesn't sound particularly appealing to me. I get the whole "drive whatever Arnold registers for a while" thing, but let's facw it the majority are just bland hatchbacks and the likes anyway.

Depends on your view of a car and what else you would do with the money "lost" I guess

Edit - whether that salary sacrifice is net and if you're a 20/40% payer could make quite a difference there

kaiowas · 3 Oct 2016 at 18:23

Looks to me as though that benefit is calculated over the remainder of this tax year so over a full year you'd pay about double that.

[TW]Fox · 3 Oct 2016 at 18:25

kaiowas said:
Looks to me as though that benefit is calculated over the remainder of this tax year so over a full year you'd pay about double that.i

Yup - the exact dates for which it is valid are shown in the Summary.

Ahleckz · 3 Oct 2016 at 18:29

[TW]Fox;30067640 said:
Ah fair enough, that sounds a bit different then

Are you a 40% or a 20% taxpayer? It's £424 if you are a 20% taxpayer.

On course to be 40. Most my pay is commission based, but likely to be 40%.

rodenal said:
If there's salary sacrifice plus the cc taxation it doesn't sound particularly appealing to me. I get the whole "drive whatever Arnold registers for a while" thing, but let's facw it the majority are just bland hatchbacks and the likes anyway.

Hah, yep. I don't think the boss will sign off on me having any of the Megane 275's we've got! The Kadjar is the most exciting I can go unfortunately.

kaiowas said:
Looks to me as though that benefit is calculated over the remainder of this tax year so over a full year you'd pay about double that.

Good spot! I've just put in for the full year, and it works out £145 a month. Plus the loss of £1800 in my basic, £295 seems a fortune. That's my mind made up I think! Now, the big question is if (when) the MX5 fails it's MOT spectacularly tomorrow what do I replace it with?... Decisions decisions!

Tinders · 3 Oct 2016 at 18:48

This is the best website ofr company car tax stuff.

http://comcar.co.uk/