company car vs car allowance

zagfles

saferider wrote: »

Hi,

I also have the same question, I have been taking the cash option for the last 2 yrs (340 pcm), if i go for a company car i can get abt 375, I currenty use a 10 yr old car with loads of miles on it without any major issues my yearly maintanance is less than 500£. since my family has become bigger planing to get a bigger car, the car which i am interested has the highest CO2, hence the policy faq says my tax is 1920pa, I am in the 40% tax bracket.

I have 0 business miles, drives about 8k personal miles an yr. my employer gives the option as a status car user.

not sure whether i am better off buying a car outright (not a new one, 2-3 yrs old) or go for a company car. any advice.

Thanks,

I'm a bit like you, do about £10k personal and hardly any on business, and happy to drive an older car (I usually buy new but keep the car for ages). Also need a big car for the family.

I'm definitely better off with the allowance, although it's a bit more than yours. I bought a new Mondeo a few years ago for £12k, and intend to keep it at least 8 years, so I'm allowing £1500 per year depreciation, plus about £1000 for all costs except petrol (ie servicing, repairs, tyres, road tax, insurance etc), so about £2500 total, and my allowance after tax is over £3000. So I get a "free" car plus £500! If I'd taken the company car option I'd get a "free car" but have to pay a load of tax on it.

Mint_FRST

Same old questions as most and hoping someone could advise on my personal circumstance...

I have been a car allowance person for nearly the last 4No years, however I changed jobs last year (Still providing my own car) but recently have been offered a company car and due to a change in my personal circumstance(My wife is due our first child in April!) I am un decided what to do!

Basic info:

Higher tax band earner.
Currently driving a 11 year old petrol car.
Current car allowance of £400.00 PCM.
Current busniness claim per mile 0.10p.

2011 personal mileage to the office 4500 mile.
2011 business mileage 3500

1. Can I can claim the difference in the HRMC rates for my business mileage for last year i.e. 0.35ppm?

Car on offer is a 3 series BMW or similar (Diesel). My mileage is not likely to change vastly both private or business. I can take a fuel card also, I assume due to the little private paying it back would be best?

I am thinking company car as I possibly have to look at replacing 2No cars, this as my current is getting a bit long in the tooth and the wifes current steed isn't practical.

I appreciate decisons arent always financial and I personally dont mind running my own cars. Savings with a new family will be great and as a company there is no particular standard of car to provide.

Thanks in advance...

GeoWi

Hi , thanks for this forum. I started last year as employee, there was no option for company car however car allowance was promised. It started on 30ppm and stays there. During last six months last year I've covered 6500 business miles and a few private ones. This left me with £110 for maintenance car payment etc. This year I've been assigned to work in central London in January I've covered 818 miles all in Central London. Mileage allowance paid simply not covering even petrol usage (i am short for £20 in January), There is also excessive tear and wear of my private car (SKODA 2.0i 2007). Do I have any power to request car allowance? Is there any stated minimum for car allowance paid by employer? I feel like paying for going to work . I appreciate any response. Thank you for your time.

guyman

help please , would like to know difference on tax and how much i can save as my car up for renewel ,
30k per year , can choose from Astra ES / Elite / SE to an Insignia SE but will i save that much to really notice a month , currently have a Vectra 1.7
Do approx 2k personal and 4k business pa

BoGoF

Guys (or gals) you would be better starting a new thread if you are asking a question.

@guyman - without knowing the CO2 emissions then impossible to give an answer.

guyman

hi , can choose between
Astra 1.7CDTI 16v (110PS) ecoflex 119 5 door hatch manual
to a

Insignia 2.0CDTI 16v (130PS) 5 door hatch manual

Does that help ?

BoGoF

guyman wrote: »

hi , can choose between
Astra 1.7CDTI 16v (110PS) ecoflex 119 5 door hatch manual
to a

Insignia 2.0CDTI 16v (130PS) 5 door hatch manual

Does that help ?

Not really as car benefit charge is based on CO2 emissions.

Suggest you find these out and enter details on HMRC car benefit calculator

http://www.hmrc.gov.uk/calcs/cars.htm

guyman

ok not much makes sense ,
all i want to know is what will be my savings between the following pleeease ?
Cheapest option
Astra diesel co2 emissoions 119g/km value £18330
OR dearest option
Insignia diesel co2 emissions 124g/km value £24480
cant get my gead around it ,
how much will i be better of a year / month ?
thanks

BoGoF

For next tax year (2012-13) the Astra has an annual cash equivalent of £3116 and the Insignia £4406.

So depending on your tax rate the Astra will be £1290 @ 20 or 40% a year cheaper (£258 or £516).

This assumes that the value's you have quoted are the list prices and your employer does not pay for private fuel.

cheesy*wotsit

Oh god. I've looked through this thread and don't understand it at all. I'm starting a new job that includes a car allowance of £300 p/m. I know what car I want, petrol Ford Fiesta, CO2 of 99, value of about £18k after extras. How on earth do I work things out? Who pays the VED, who holds the V5 "log book" Help!!! :eek::o