Question about company car schemes.

[wassap]

Hi Guys, how do standard company car schemes work?

Does a company just make a list of cars available to you, you pick one and just pay the tax for the car and fuel? is it as simple as that or would you have to pay a contribution towards the car?

Im considering changing companies at the mo, and at my present company we dont operate a company car scheme, more a car ownership scheme, so they get around the tax issue.But if I change company/job I need to weigh up if the extra salary would compensate for any extra tax I would pay.

 

[Axeboy]

Well.. as an idea from me.

Current scheme; no tax, given an allowance, any over and I pay, generally about £50 to get the car that the position should bring, better than tax.

Other Job I was offered some time back; more limited choice of cars, about 10 or so, no 'charge' difference, but tax varied on each, ie, take a polo or a mondeo, you pay the tax

Not sure what car tax is for say a mondeo, but im pretty damn sure its more than the scheme I have. Also, not sure if 40% tax payers would pay more, probably... as that can change the allowance on the first scheme too.

 

[Fr0dders]

theres no such thing as a "standard"

there are a couple of most common ways though. Most usually give you a set ammount per month as a taxable benefit in kind.

You will then usually be told that this entitles you to x .. and get to choose from a list. Sometimes they tell you how much the car is per month, other times you just get told you can have anything thats in "category 2" or similar

Some companies if they feel nice, give you the choice to opt out of this and take an allowance instead to run a company car.

You will need to find out from your prospective company if they can offer you a company car allowance, or if your compelled to lease one of their cars.