Company Car / Car Allowance Questions
Options
Comments
-
Thanks for the replies.....
To compare company car vs car allowance, on my HMRC letter do I check the "Less Car Benefit" line? If that is more than the car allowance am I loosing out?
With regards to car leasing, I do in excess 40,000 miles a year and can't find a decent car lease that will provide a car for that amount of mileage.
My only concern is once the vehicle is taken away, I'll effectively get £5,000 / year which will be £333.33 a month (after tax). This is no way enough to purchase a vehicle, never mind the ongoing maintenance/insurance/tax/breakdown etc.0 -
£5k/yr before income tax, don't forget.0
-
-
I thought it was an allowance, effectively a bonus. Can an employer specify which cars you can buy?
Yes they can. Maybe not a specific model but a car with 4 doors less than 5 years old for example. Fortunately ours isn't specified other than being 4 door.owainjones wrote: »So in my first post where I asked is it taxed, are we saying it's not?
Not sure why you now think it's not taxed. Every reply has stated clearly that it is taxed. We can't say what you get after tax as it will depend on your tax rate and circumstances. Not sure if it's subject to NI too?
It could be as low as £229 per month if you paid 45%owainjones wrote: »My only concern is once the vehicle is taken away, I'll effectively get £5,000 / year which will be £333.33 a month (after tax). This is no way enough to purchase a vehicle, never mind the ongoing maintenance/insurance/tax/breakdown etc.Remember the saying: if it looks too good to be true it almost certainly is.0 -
-
owainjones wrote: »So in my first post where I asked is it taxed, are we saying it's not?
So for £5000/year will it be
£333.33 cash a month or £416.67 cash a month?
You are being paid £5,000 before tax. £416.67/mo. If your personal income tax rate means that works out to £333.33, then - yes - £333.33 after tax. Sorry, I just saw the £5k figure and didn't bother with the /12 bit.0 -
Don't forget you will no longer be paying tax on the benefit that is your existing company car.0
-
you will also be claiming a mileage rate for business use I would expect. Currently HMRC is 45ppm for the first 10000 then 25ppm thereafter0
-
you will also be claiming a mileage rate for business use I would expect. Currently HMRC is 45ppm for the first 10000 then 25ppm thereafter
Not normally. Ours is 10p if you're given a car allowance. You can claim difference on your tax return thoughRemember the saying: if it looks too good to be true it almost certainly is.0 -
Not normally. Ours is 10p if you're given a car allowance. You can claim difference on your tax return though
Christ 10p barely covers the fuel costs.
Op : you need to check what mileage rate you can claim as with your mileage you should be quids in (you should be able to claim £11,000) towards running costs on 40,000 miles.The futures bright the future is Ginger0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards