Just after a sense check to my thinking on the car vs. allowance conundrum that pops up and bores everyone now and again.
My position is this.
Option a)
Source the car myself, with a net allowance of £300 pcm. Insurance is covered by the company, but all other aspects are my responsibility. There are some restrictions on the car, in terms of age but otherwise I am free to choose what I want.
Option b)
Get a company car and have everything paid for, but pay tax.
Now to make the comparison objective, I am trying to factor in running costs that I have to cover when looking at sourcing the vehicle myself, as well as the cost of the car (assuming I take a PCP agreement with minimal deposit, ignoring the balloon payment). All calculations are based on 4 years.
TLDR:
If the car costs £150 on BiK tax. I have £450 (£300 allowance + £150 tax) to fund my privately sourced option to get back to the same point.
Am I missing anything?
My position is this.
Option a)
Source the car myself, with a net allowance of £300 pcm. Insurance is covered by the company, but all other aspects are my responsibility. There are some restrictions on the car, in terms of age but otherwise I am free to choose what I want.
Option b)
Get a company car and have everything paid for, but pay tax.
Now to make the comparison objective, I am trying to factor in running costs that I have to cover when looking at sourcing the vehicle myself, as well as the cost of the car (assuming I take a PCP agreement with minimal deposit, ignoring the balloon payment). All calculations are based on 4 years.
TLDR:
If the car costs £150 on BiK tax. I have £450 (£300 allowance + £150 tax) to fund my privately sourced option to get back to the same point.
Am I missing anything?