Tax confusion

stevex41

Good evening all,

I have recently started a new job and now need to decide if I'm going to take a company car or not.
So far I've tried several online tax calculators and I'm still confused.

My basic salary is £35000 gross
My annual bonus £ 1100
My car allowancce £519/month gross

My pension will start next month at 8%

I pay private health care of £100/month

Can anyone generate some figures so that I can make the decision on whether to take a car allowance or company car, please?
I feel that I am missing something obvious as I just can't work this out!!!
I'm getting confused with the rules of Income Tax/ NI and the whole 22/40% business.

Anyway, all help very much appreciated.

Kind Regards,

Steve.

ceeforcat

http://forums.moneysavingexpert.com/showthread.html?t=1418275

Above is a link to a previous answer I made on this. Your car allowance is taxable and National Insurable. Because of your pension contributions you appear to be a basic rate taxpayer and you will effectively receive about £400 net car allowance per month. Calculate the costs of maintaining your own car (do not forget depreciation) over, say, a three year period and deduct this £400 (£4800 per annum). Compare this with the tax on your company car as I have described in the above example.