Company Car, taxable?

boom123_2

Hi there! I am going for a new job on Monday which is 95% guaranteed to be successful ie they will employ me! A company car is on offer and i have never had this as a benefit in employment. I will be covering a lot of miles so I guess this will be a benefit to me but how will this effect my tax? Will it be tax deductable and if so how much and how do they work it out? Also at the moment i use my car for various jobs but not covering as many miles but I get mileage at 28ppm, this does n't cover up keep of my car. The company that I am going for a job with have put a company car on the table or 28ppm mileage using my own car for the job on offer. I don't know what to do? Can anyone advise please?

Thanks

elf198

Hi,

Yes you will be taxed on the company car - how much depends on what car (how much it cost) and its Co2 emissions.
I've just got rid of my company car - I think I was paying about £80 a month in tax on a VW Golf. I had the service, insurance, breakdown costs payed for by the company and got 11p per mile diesel for work use. Benefit was OH could also use it. Got rid of it as not doing the miles now so if you are going to be doing a lot of miles it might be worth it.

HTHs

elf

Valli

And bear in mind that if you are using your own car you will have to re-insure it for work use.

Lifesaver

Valli wrote: »

And bear in mind that if you are using your own car you will have to re-insure it for work use.

Use for Business added to Insurance only costs around £20 per year more!

JOel_2

Sometimes there also may be a alternative cash offer. My work offer me the car or a taxable cash alternative (which is actually more that the cost of the lease on the company car)

Joel

ceeforcat

Have a look at a previous reply I made to a similar post - not definitive but worth considering.

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

PasturesNew

Company Car Tax Calculator

http://www.whatcar.com/company-car-tax.aspx?MA=1&MV=25391&ED=53709

To calculate company car tax for a different car, select a car using the dropdown menu options and click the CALCULATE button.

greenbee

You might also want to remember that companies are also starting to restrict who can drive company cars. You may have to make it available to other employees (within reason) if they need it for business purposes (I used to drive my boss's car and HATED it!), and they may limit the family members who can drive it and how much.

I have a car allowance and get a small mileage rebate (which I can then claim tax relief on as it is below HMRC's figure).

Valli

Lifesaver wrote: »

Use for Business added to Insurance only costs around £20 per year more!

I wasn't really referring to the cost - just that the OP should be aware this would need to be done with immediate effect should the job be taken - rather than wait for annual renewal.

Lifesaver

Understood, however, in my experience staff I have worked with that require Business Insurance think it's going to cost an absolute fortune.

boom123_2

Thanks everyone! I got the job I've taken the car (a zafira) which will cost approx £900 per year (checked from the link to what car?), i'll get a petrol card to so I'm going to take the car, sell my Mondeo and get a smaller car for my OH to use when i've got my work car. All your info and advice has been much appreciated.:j