Cost to me of moving to a company car

Simon_B_2

I'm currently on a car allowance and have the option to switch to a company car at the end of this month.

can somebody explain the costs to me will i simply lose my allowance and pay additaional tax

this is the one i'm most likely to end up with

http://www.whatcar.com/company-car-tax.aspx?MA=30&MV=25550&ED=53134

with a yearly car tax of £392 as i'm in the 20% tax band it would it cost me about £32.66 in tax a month?

bootman

Can you buy, run insure you own car for £32.66 a month? Company car I say.

Simon_B_2

bootman wrote: »

Can you buy, run insure you own car for £32.66 a month? Company car I say.

That doesn't include the allowance that i'm paid for running my own car

BillScarab

Assuming you don't make any contributions and don't get free fuel that would be the tax you will pay.

For me the main benefit of a company car is the peace of mind as I don't have to worry about any unforseen costs like repairs or tyres.

Without knowing what allowance you get currently no-one can really say whether moving to a company car is right for you.

AdrianHi

I've done the sums myself comparing company car, where I own the company and get the benefit if 50% reduction in VAT payable on the lease and pay 40% tax and it is by a small margin worth staying with a private car for me.

Without doing the sums (which would take quite some time) I would estimate that if you want to run a car up to 3 years old all the time and your happy with this as your car your likely to be better off with the company car.
Consider the fact that if your employment ends with this company, you loose the car.