Been offered a company car

[iaind]

Provided I correctly understand the company car system its going to cost you about 90 quid a month given it's in a £20k car in the 13% tax bracket and you are presumably not a higher rate tax payer.

To be honest compared with your Accord I'd be half tempted to go for that. It's really not much money is it?

That's less than I was expecting to be honest

So for the same price as my tedious old car, I could have a tedious new car without the hassle and some other benefits. Few cons, as per the OP.

It's that, or like mark says, up the running costs by 50% and get something less boring

 

[[TW]Fox]

Actually my figures were for a 40% tax payer

As a 20% tax payer assuming P11D is 19500, 13% tax bracket so BIK if 2.5k, thus... 500 quid a year!?

Do it, do it hard. But check my Maths first!

 

[iaind]

You cant have it if you are going to post about that fact its good, its not, its a horrible diesel engine, its just cheap ok?

Oh it's nothing I'd consider good, I was just impressed because I had low expectations.

Stop start tech though - that's pretty distracting stuff isn't it!

 

[DRZ]

Actually my figures were for a 40% tax payer

As a 20% tax payer assuming P11D is 19500, 13% tax bracket so BIK if 2.5k, thus... 500 quid a year!?

Do it, do it hard. But check my Maths first!

Yep. As you can see above I disagreed with your initial figure but this is now correct.

At £43 a month, this is a no brainer

 

[iaind]

Actually my figures were for a 40% tax payer

As a 20% tax payer assuming P11D is 19500, 13% tax bracket so BIK if 2.5k, thus... 500 quid a year!?

Do it, do it hard. But check my Maths first!

I'll talk to HR or Monday as I'll need to find out the deal with personal use too

 

[Janesy B]

I got a **** load out there and a son that has suddenly become very interested in selling diamonds rather than cars, that kid does my head in.

Still on the up side im going to get hammered tonight then go argue with everyone at the lodge

Can I be your son please? I've got the adoption papers ready, all I need is a signature and we're good to go

Oh and if it really is as cheap as £50 a month, I'd bite the guys arm off.

 

[iaind]

I got a **** load out there and a son that has suddenly become very interested in selling diamonds rather than cars, that kid does my head in.

Still on the up side im going to get hammered tonight then go argue with everyone at the lodge

Kids eh?

Also, I hate you, i could murder a few pints and a couple of cigars tonight but I'm doing a consultancy job this weekend and next for a friend

 

[NickXX]

Assuming it's a £20k car and 13% CO2 rating and you are not in the HR tax band, you're looking at around £500/year in tax.

Small diesels are always going to be cheap in company car tax, I don't get why people would think otherwise. Even if you're in the HR band you're only looking at a grand a year for a free car.

 

[DRZ]

I'll talk to HR or Monday as I'll need to find out the deal with personal use too

Personal use doesn't affect you unless:

a) You go over the lease terms for annual mileage, where you would have to meet the extra money, typically around 6p a mile

b) You have a fuel card with the associated MONSTER tax.

On the other hand, if they have told the taxman that it ISN'T for personal use they will have to revise that and stump up VAT on the lease.

 

[iaind]

Personal use doesn't affect you unless:

a) You go over the lease terms for annual mileage, where you would have to meet the extra money, typically around 6p a mile

b) You have a fuel card with the associated MONSTER tax.

On the other hand, if they have told the taxman that it ISN'T for personal use they will have to revise that and stump up VAT on the lease.

There's a fuel card in it, assigned to the car with the company name on it. Thats all I know though

 

[[TW]Fox]

You really DONT want a fuel card for personal use unless you are one of these people who does 30k a year for private mileage.

 

[iaind]

You really DONT want a fuel card for personal use unless you are one of these people who does 30k a year for private mileage.

Personal mileage is tiny.

How would it work otherwise - fuel card for business mileage only on a trust basis? Or would I be filling he up and claiming it back?

 

[NickXX]

There's a fuel card in it, assigned to the car with the company name on it. Thats all I know though

Assuming it's not changed recently, fuel card tax will be:

£14,400 x 13% x 20% = £374/year for free fuel.


No brainer if you're a basic rate tax payer.

 

[iaind]

Assuming it's not changed recently, fuel card tax will be:

£14,400 x 13% x 20% = £374/year for free fuel.


No brainer if you're a basic rate tax payer.

I'm 20% at the moment, but crossing into the high rate while in this job wouldn't be totally out of the question

 

[[TW]Fox]

Wow, really?! I always thought the cost of a fuel card was so ridiculous you really needed to be doing proper mileage for it to add up

 

[DRZ]

Fox is correct. The BIK value of a fuel card where private mileage is included is £18,000 as of April 2010. So in your case:

£18,000 x 13% (again it is based on the CO2s of your car) = £2340. At 20% that is £40 a month. If you use more than £40 of fuel a month every month without fail, great. If not, you are worse off. Remember that your company still pays for that fuel as well, as well as NI etc etc - they might not be too happy if you suddenly start piling on the mileage!

 

[DRZ]

Wow, really?! I always thought the cost of a fuel card was so ridiculous you really needed to be doing proper mileage for it to add up

It is, if you have a petrol car that loves to chuck out CO2! If you were a 40% taxpayer and had a car at 35% you would be paying £210 a month!

 

[NickXX]

Wow, really?! I always thought the cost of a fuel card was so ridiculous you really needed to be doing proper mileage for it to add up

Depends on the car - I guess if you've got a 30% car and you're a HR payer then you were looking at:

14,400 x 0.3 x 0.4 = £1,728.

Obviously higher now with the £18k bik.

 

[iaind]

Fox is correct. The BIK value of a fuel card where private mileage is included is £18,000 as of April 2010. So in your case:

£18,000 x 13% (again it is based on the CO2s of your car) = £2340. At 20% that is £40 a month. If you use more than £40 of fuel a month every month without fail, great. If not, you are worse off. Remember that your company still pays for that fuel as well, as well as NI etc etc - they might not be too happy if you suddenly start piling on the mileage!

Personal mileage, in that car would be half that. I'm only putting about 30 in the honda

 

[DRZ]

Well then you need to see about opting out of the fuel card if you can. If you do opt out you will need to claim back your fuel (for business miles) on expenses at the HMRC current rate for diesel company car drivers, which IIRC is about 11p per mile but they revise it every 6 months I think.