Company car tax threshold - pro rata?

MrPez

I'm trying to find out whether I would be better off getting a company car.
I work for a family business as well as full time for the NHS.
For the family business I get £6500 to do the job. I work all year round but not fixed hours (it usually works out something around 10 hours per week).

From the hmrc website, it says:

The £8,500 operates on a pro rata basis if the employee only works for part of the year. For example, if an employee only works for six months of the year then you'll need to use a form P11D if their earnings in that period are £4,250 or more.

Does this apply to me since I work all year, just not 40 hours per week?

fengirl_2

This does not apply to you since you work all year. This example would apply to someone who was only actually employed for part of the year and it makes the point that if you only earn, say £8k for 6 mths work, you need to double it to get the annual rate of pay, therefore they are not exempt from a charge for the car.

MrPez

Thanks, thats what I was hoping for.
So the way I understand it I wouldn't suffer company car tax or fuel tax (provided I do not go over £8500 per year). I would save on income tax by way of salary sacrifice but would still have NICs to pay.
At the end of the lease/HP term, if I were to buy the car from the company there would be a transfer of asset tax to pay depending on the value of the vehicle.
Are there any other taxes I'm missing?
I'm aware some of the above is paid by the company rather than me personally, but I'm just trying to work out the true cost of a company car before deciding if it is worth it.
Thanks!

fengirl_2

You say this is a family business. If the other directors are your parents and you live with them, the benefit would be charged on one of your parents as the car would be assumed to be of benefit to the household.
There is no transfer of asset tax, but you (or your parents) would be liable to income tax on the value of the car less what is paid for it.

MrPez

One of the directors is my father, but I do not live in the same house. I spoke to the revenue about this and was told that I would be assessed in my own right as an employer rather than my dad having the charge.
Thanks for the info.