Car Allowance .....

[RSR]

Any one know how this works? Is it taxed on top of your normal PAYE stuff?

Thanks

Andy

 

[ringo747]

I think it just is the same as getting paid an extra few grand. Tax is just the normal rate e.g. 20% or whatever. Thats the way it works in our place. Now all i need is for the thing to get approved!

 

[RSR]

I think it just is the same as getting paid an extra few grand. Tax is just the normal rate e.g. 20% or whatever. Thats the way it works in our place. Now all i need is for the thing to get approved!

Ahh ok.

Thanks chap.

 

[Confused]

But of course if by getting the car allowance your pay increases to the next tax bracket... you may not be better off!

 

[Rotty]

you get deducted tax and NI as any other income, however you may be able to claim AMAP tax relief on business mileage depending on how much you are paid

 

[Rotty]

But of course if by getting the car allowance your pay increases to the next tax bracket... you may not be better off!

that cannot happen

 

[Confused]

that cannot happen

I thought if your pay was near the top of the 25% bracket, and you then were moved into the low-end of the 40% bracket, you might end up taking home less...?

If I'm wrong then oops!

 

[RSR]

you get deducted tax and NI as any other income, however you may be able to claim AMAP tax relief on business mileage depending on how much you are paid

Ahhh right. I need to find all this info out as ive never had a car allowance before.

Andy

 

[Rotty]

I thought if your pay was near the top of the 25% bracket, and you then were moved into the low-end of the 40% bracket, you might end up taking home less...?

If I'm wrong then oops!

no, you only pay the higher rate on the amount above the threshold, the amounts below continue to be taxed at the lower rate

 

[Rotty]

Ahhh right. I need to find all this info out as ive never had a car allowance before.

Andy

let me know if you need any help with it

 

[Janesy B]

I thought if your pay was near the top of the 25% bracket, and you then were moved into the low-end of the 40% bracket, you might end up taking home less...?

If I'm wrong then oops!

For the purpose of this argument, 10% is up to 15k, 25% is 40k and 40% is 40k and over. (I don't know the real rates )

The first 15k will be taxed at 10%
The amount between 15k and 40k is taxed at 25%
The amount over 40k is taxed at 40%

I hope that makes sense

 

[Mr-White]

you'll also get charged emissions tax on the type of vehicle you choose

MW

 

[Rotty]

you'll also get charged emissions tax on the type of vehicle you choose

MW

no you won't

that's company cars not car allowances

 

[borich_planner]

My car allowance before I had a company car was taxed as normal

Borich

 

[RSR]

no you won't

that's company cars not car allowances

So could i techincally get a 911 or Evo then

Andy

 

[RSR]

let me know if you need any help with it

Nice one thank you.

Just see how i get on at the interview

Andy

 

[mike5678]

For the purpose of this argument, 10% is up to 15k, 25% is 40k and 40% is 40k and over. (I don't know the real rates )

The first 15k will be taxed at 10%
The amount between 15k and 40k is taxed at 25%
The amount over 40k is taxed at 40%

I hope that makes sense

Starting rate for savings: 10% £0-£2,440
Basic rate: 20% £2,440-£37,400
Higher rate: 40% Over £37,400

(Personal Allowance band £6,475)

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

 

[Rotty]

So could i techincally get a 911 or Evo then

Andy

subject to any restrictions the company put in their policy

 

[RSR]

subject to any restrictions the company put in their policy

Ahh ok.

 

[RSR]

Starting rate: 10% £0-£2,440
Basic rate: 20% £2,440-£37,400
Higher rate: 40% Over £37,400


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

Eeek.