Works lease car - counting the cost

Snowy190uk

I am on the verge of signing up for a lease car through my place of work (NHS). Its a 3 year lease so I wanted to find out the answer to a question nobody seems to be able to answer.

The car, to me, will cost a monthly lump sum plus a monthly "car benefit tax at 20%".

My question is; other than these two costs are there any other costs which will have an affect on my monthly income - ie: increased income tax or anything else?

I've spoken to friends who have spoken of an increase in tax when they took a company car (not through the NHS), but dont want to get confused with private company lease and NHS lease, which seem to work differently????

Kilty_2

"car benefit tax" will be your increase in income tax....

Snowy190uk

Kilty wrote: »

"car benefit tax" will be your increase in income tax....

So in other words the two costs I noted above are the only costs to pay?

BillTrac

Is the lease a deal between you and the lease company? If you lease the car directly yourself then there is no tax on the benefit. If the lease is between the NHS and the lease company you will pay car tax on the list value of the vehicle. This used to really niggle me when I had a company car. The company I worked for could get a Vectra with a list price of £20k for £13k, but I was taxed on the £20k band

Who pays for the fuel you will use? If you pay and claim business miles back then you will not be taxed on fuel benefit. If the NHS pay for your fuel then this will increase your tax laibility

Snowy190uk

BillTrac wrote: »

Is the lease a deal between you and the lease company? If you lease the car directly yourself then there is no tax on the benefit. If the lease is between the NHS and the lease company you will pay car tax on the list value of the vehicle. This used to really niggle me when I had a company car. The company I worked for could get a Vectra with a list price of £20k for £13k, but I was taxed on the £20k band

Who pays for the fuel you will use? If you pay and claim business miles back then you will not be taxed on fuel benefit. If the NHS pay for your fuel then this will increase your tax laibility

Quite a few questions there! But I'll try to expand...

The lease car is an agreement between me, the NHS and the lease company as the NHS is contributing to the cost.

I've actually spoken to the lease company who tell me that the amount I and the NHS pay is based on multiple things - how many business/personal miles I do, plus the value of the car and the future depreciation so its very hard to get your head around working out costs other than the quotes they provide me with. I am allowed to claim back 10p per mile for the business use.

To quote figures, the benefit in kind tax on this particular car is estimated at £10.80 per month (seems a very small amount) plus £220 a month for a 21k car. I just want to find out is; if taking out this lease car has any other changes to the tax on my wage or anything else. Are the two costs above it?