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  • FIRST POST
    • Alastair83
    • By Alastair83 30th Nov 17, 11:28 AM
    • 1Posts
    • 0Thanks
    Alastair83
    Confused
    • #1
    • 30th Nov 17, 11:28 AM
    Confused 30th Nov 17 at 11:28 AM
    Hi all


    I was wondering if you could help me, I live in Scotland so know the tax rate us slightly different but below is my question


    Currently I get £40,000 per year gross wage with fully expensed company car, this will move to £45,000 which leads me to believe ill be a higher tax payer


    so my questions are


    with me moving to a higher tax rate does this mean my BIK for company car will double to 40%


    I'm looking to start taking out childcare vouchers per month which will be tax free but if I take out the max allowed this will bring my taxable rate down wont it as it will make my gross wage under the £3,583 per month ? does this mean my BIK would stay at 20%


    last question, is it worth jumping to £45,000 or would I be better only going to £43,000 and remaining at 20% for company car


    hope that makes sense
Page 1
    • Darksparkle
    • By Darksparkle 30th Nov 17, 1:21 PM
    • 4,691 Posts
    • 2,971 Thanks
    Darksparkle
    • #2
    • 30th Nov 17, 1:21 PM
    • #2
    • 30th Nov 17, 1:21 PM
    Your tax rate will depend on your total taxable income. Without knowing the benefit value of the company car it’s hard to comment. Also if paying into a pension that will effect it.

    Google salary calculator and use that website to work it out. There’s an option to compare two salaries.
    • Dazed and confused
    • By Dazed and confused 30th Nov 17, 8:13 PM
    • 1,936 Posts
    • 872 Thanks
    Dazed and confused
    • #3
    • 30th Nov 17, 8:13 PM
    • #3
    • 30th Nov 17, 8:13 PM
    You have misunderstood how tax works.

    There is no tax rate for company cars, you pay whatever tax applies to your personal circumstances.

    So in a very simple scenario if you were on £40000 and had a car benefit of £3001 you would be a 40% payer. But you would only pay 40% tax on £1.

    From your original post you already appear to be a higher rate payer as the standard limit in Scotland is £43000 so you must have a very low car benefit, you have overstated your salary (it is taxable salary which counts) or are paying some 40% tax.
    • Alice Holt
    • By Alice Holt 1st Dec 17, 12:58 AM
    • 1,577 Posts
    • 1,682 Thanks
    Alice Holt
    • #4
    • 1st Dec 17, 12:58 AM
    • #4
    • 1st Dec 17, 12:58 AM
    I'm confused by why you have posted this question in the Benefits forum and not the Tax forum - http://forums.moneysavingexpert.com/forumdisplay.php?f=22

    I'm also puzzled by why you would decline a salary increase. If you are so exercised at paying 40% tax, why not increase pension contribution to bring your taxable income back to the 20% rate?

    This Company Car Tax calculator may help you:
    http://cccfcalculator.hmrc.gov.uk/CCF0.aspx
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