Company car tax question

chipperhead · 9 Sep 2009 at 13:55

Just looking into getting a car for the misses through her work, she's just spoke to them but the woman on the phone was useless.
They've emailed me the lease details and I'm not sure regarding how much tax we'd pay. It says if we get a car that emits for example 140g per km we would pay 16% of list price but it doesn't say what this means.
Is this per year, so if we got a car for £16000 we would pay £2560 tax per year?

john_s · 9 Sep 2009 at 14:42

The 16% figure is the value of the benefit in kind, so you pay tax on that - ie 20% of the £2560 (assuming she's not on higher rate tax).

If the company also provides fuel for private use, there will be a benefit in kind that as well.

The HMRC calculator here:

http://cccfcalculator.hmrc.gov.uk/CCF0.aspx

will tell you what she'd have to pay.

lovedaddy · 9 Sep 2009 at 14:44

Its <value> * <% from co2> * <% earnings bracket you are in>

For example, my 118d 1 series is something like....

£22,000 * 0.13% * 0.20

As I'm in the 20% income tax bracket, and the CO2 puts it in the 13% band.

About 48 quid a month tax off my wages.

Dont forget you pay for the extras (so if you have 2k of extras add that onto the list price etc).

Hope that helps.

chipperhead · 9 Sep 2009 at 22:57

Thanks for the info