Associate
I'm pretty sure where I work if you opt out of a company car and take the money you can still only claim the company car mileage rate, not the personal mileage rate.
new company car or opt out?
- Thread starter rapid64k
- Start date
As I said above that's how it works at my place. The thing being you can claim the tax back on the difference between the HMRC guideline rate and what you actually get if using a private non company vehicle.
Its looking that way.
Caporegime
With a company car you're paying (a lot) to avoid the hassle of purchase, maintenance, resale, and in this case, finance. Financially, it hardly ever makes sense.
He's already said he doesn't have cash put by at the moment though and has had a "financial nightmare" and bank loans etc. In which case he probably doesn't have money for a deposit for a new car on finance, and may not even be credit worthy enough to obtain finance. Most opt-out schemes put limitations on the type and age of car you can run, so again I'm assuming he doesn't have money to drop on buying a decent used-approved or newish secondhand car.
If it's like our scheme in 3-4 years he'll be able to choose to either take a new company car or then opt out. Taking a car here doesn't prohibit you from then switching to the opt out scheme once the car period is up (4 years at our company)
I would draw the line at been credit worthy lol. But yes just had new windows fitted....finished divorcing my wife etc....
Caporegime
Yes, he has already said that. Thank you for clarifying what he's already said. However I'm unsure why you quoted me before doing so.
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
It doesnt make financial sense, but it makes sense for other reasons in his case.
Financially speaking it will likely end up costing him more than if he was able to take the allowance.
Commissario
I don't know your circumstances so I can't give specific advice.
But....
I opted out of a company car around 15 years ago and it was a decision I've regretted ever since. Unfortunately I have no chance to opt back in again but if I did, I'd take it like a shot.
But....
I opted out of a company car around 15 years ago and it was a decision I've regretted ever since. Unfortunately I have no chance to opt back in again but if I did, I'd take it like a shot.
Since you had a company car the way it works has changed significantly. Company cars in the 90s were an absolute no brainer, it was by far and away the best option.
Commissario
You're right to an extent but it was 1997 when I opted out and legislation was already on the move. My business mileage had dropped dramatically and at the time it was the right thing to do.
I changed jobs three years later and because I didn't have a company car, I wasn't offered one by the new employer. If I'd had one, I'd have been offered one as part of the package and I'd still have one now.
Hindsight, eh? Wonderful thing.
I changed jobs three years later and because I didn't have a company car, I wasn't offered one by the new employer. If I'd had one, I'd have been offered one as part of the package and I'd still have one now.
Hindsight, eh? Wonderful thing.
Spoke to one of my mates at work he says it works out better to take the company car as he has a BMW 3 series and says it works ok with only £73 a month tax emission is only 109 co2.
Still cant speak to my other friend who got a bmw 3 series diesel saloon 320d efficientdynamics 4dr as he is still off work.
Still cant speak to my other friend who got a bmw 3 series diesel saloon 320d efficientdynamics 4dr as he is still off work.
You really have to look at things on an individul basis, for eg, my ST3 only cost me 60 odd a month, now that was a billy bargain at the time, now thats a small fortune on the scheme.
A big factor is the amount of private miles you do aswell, my situation means that I do 16k a year private and 10k a year business, my current car is £150 with the fuel card, i wouldnt say thats a bad deal at all, same for next A4 Avant, crappy diseasal but its still only £160 inc the fuel.
A big factor is the amount of private miles you do aswell, my situation means that I do 16k a year private and 10k a year business, my current car is £150 with the fuel card, i wouldnt say thats a bad deal at all, same for next A4 Avant, crappy diseasal but its still only £160 inc the fuel.
No it didn't unless you pretend company car tax doesn't exist.
[TW]Fox;22602732 said:
How many times are we going to have the same argument
Siemens ran the ECOS scheme at the time, on which we didnt pay any tax, unfortunately Mr Brown closed the Tax loop holes, so that kind of scheme is no longer benficial.I only paid Tax on the private fuel with that car, the car itself cost me £60 per month!
Soldato
[TW]Fox;22602732 said:
Hate to say it but it costs my mate circa £23k in benefit in kind tax to have his company car. Crazy money.
Well I got my new company car. I opted for the 3 series efficientdynamics (low emmisionsless tax) and I added an automatic option.
Some other bloke has opted for the Luxury model and has added loads of options - I hope he likes his wage packet when he gets it at the end of the month
Some other bloke has opted for the Luxury model and has added loads of options - I hope he likes his wage packet when he gets it at the end of the month