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Company Car tax help!!
panholio
Posts: 64 Forumite
in Cutting tax
I am trying to work out what company car tax I will have to pay - all the online calculators seem to miss something.
My salary, not including the company car is just into the 40% tax bracket.
All the calculators either give you a 40% figure or a 20% figure. Surely mine will be somewhere in between as I only pay 40% on about £3k of my income.
Can anyone help me work it out?
My salary, not including the company car is just into the 40% tax bracket.
All the calculators either give you a 40% figure or a 20% figure. Surely mine will be somewhere in between as I only pay 40% on about £3k of my income.
Can anyone help me work it out?
0
Comments
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Once you are in the 40% tax bracket, you are in the 40% tax bracket for all income over the limit.£705,000 raised by client groups in the past 18 mths :beer:0
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Sorry i worded that badly!!! From what I gather the 2009/10 tax free allowance for a person like myself is 6475. The 40% tax bracket is greater than 37400 as such you would need to earn 43875 to pay 40% tax
My salary is less than that, however the BIK value of my car and fuel card takes me just over the 43875... do I only pay the 40% rate on the bit over the 40% threshold?
Is there an online calculator that can work this out for me?
Cheers!!!0 -
Yes, you only pay 40% on the income over the threshold. Not aware of a calculator, but you can work it out yourself:
example:
Salary 40000
less allowance 6475
Taxable 33525
40% band 37400
Amount of 20% band left 3875£705,000 raised by client groups in the past 18 mths :beer:0 -
Cheers for that :beer:0
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