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    • Phil_007
    • By Phil_007 2nd Oct 17, 7:00 PM
    • 2Posts
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    Phil_007
    Company Car & Personal Contribution
    • #1
    • 2nd Oct 17, 7:00 PM
    Company Car & Personal Contribution 2nd Oct 17 at 7:00 PM
    Hi There,
    I'm due to start a new job and will be getting a CC. I'll be making a 3% contribution. But I'm unsure how this impacts what tax I pay. Also I'll be getting a private fuel paid for, so I know that I'll have to pay tax on that.


    All the calculators online don't seem to handle personal contributions


    If I pay a contribution of £750pa does this get taken off the P11D value of the car so my BIK tax rate is less?


    Can anybody explain it please?


    Thanks
    Phil
Page 1
    • DoaM
    • By DoaM 2nd Oct 17, 7:24 PM
    • 3,299 Posts
    • 3,343 Thanks
    DoaM
    • #2
    • 2nd Oct 17, 7:24 PM
    • #2
    • 2nd Oct 17, 7:24 PM
    I do a trade up to a better car. For this I have to pay £50 per month. This amount gets deducted from my total monthly BIK which means it only actually costs me £50 x marginal tax rate ... i.e. it reduces my tax liability a little.

    Example 1 ... 20% tax rate ... £50 contribution ... tax impact = £10 ... net cost £40

    Example 2 ... 40% tax rate ... £50 contribution ... tax impact = £20 ... net cost £30

    Have you tried this calculator? It gives options for one-off and annual contributions.

    http://comcar.co.uk/newcar/companycar/taxcalc/
    Last edited by DoaM; 02-10-2017 at 7:26 PM.
    Diary of a madman
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    • Phil_007
    • By Phil_007 2nd Oct 17, 8:05 PM
    • 2 Posts
    • 0 Thanks
    Phil_007
    • #3
    • 2nd Oct 17, 8:05 PM
    • #3
    • 2nd Oct 17, 8:05 PM
    I do a trade up to a better car. For this I have to pay £50 per month. This amount gets deducted from my total monthly BIK which means it only actually costs me £50 x marginal tax rate ... i.e. it reduces my tax liability a little.

    Example 1 ... 20% tax rate ... £50 contribution ... tax impact = £10 ... net cost £40

    Example 2 ... 40% tax rate ... £50 contribution ... tax impact = £20 ... net cost £30

    Have you tried this calculator? It gives options for one-off and annual contributions.
    Originally posted by DoaM

    Thanks Doam,


    Using that website a standard V40 hatchback, with private fuel & 3% contribution comes out at £212 pm.


    Does that sound about right?
    • DoaM
    • By DoaM 3rd Oct 17, 9:01 AM
    • 3,299 Posts
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    DoaM
    • #4
    • 3rd Oct 17, 9:01 AM
    • #4
    • 3rd Oct 17, 9:01 AM
    It depends on exact model specified and annual salary.

    I tried with a Volvo V40 2.0 D2 Cross Country 120HP (£24,375 list), £731 annual contribution (3%), with private fuel and £40k salary. This gives £219.89 per month.
    Diary of a madman
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    • bigadaj
    • By bigadaj 4th Oct 17, 12:07 AM
    • 10,281 Posts
    • 6,600 Thanks
    bigadaj
    • #5
    • 4th Oct 17, 12:07 AM
    • #5
    • 4th Oct 17, 12:07 AM
    Thanks Doam,


    Using that website a standard V40 hatchback, with private fuel & 3% contribution comes out at £212 pm.


    Does that sound about right?
    Originally posted by Phil_007
    Is it worth you taking the private fuel, it's a fairly large flat rate which means you need to be doing quite a lot of personal mileage.
    • sheramber
    • By sheramber 4th Oct 17, 12:22 PM
    • 3,733 Posts
    • 2,751 Thanks
    sheramber
    • #6
    • 4th Oct 17, 12:22 PM
    • #6
    • 4th Oct 17, 12:22 PM
    HMRC calculator here

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