Company car tax

englandbaby

Hi
My hubbie has just started a new job and he is getting a company car as he needs one to do his job. Im just trying to find out if the CSA will calculate his income after the higher tax rate is applied or do they calculate on his salary ?
Hope that makes sense!?
C x

mum24boys

My DH has a company car and its taxed at source and is included in the over all tax deduction. The CSA have to take this off before they can calculate the assessment. It depends on the price of the car how much tax you pay. You may need to inform tax credit office to about cocar (thats if you use them) as they take the amount on the P11d form as payment in kind and is included in your income. This caught me out the first year as we did not know. Its £3336 which is taken as income for us which is a real pain as he has had it over four years and the whole car is only worth £3500 now but we declare the same amount every year. TBH having a co car is not as great as it seems as it can work out to be more expensive in the long run. 20% of the payment in kind value is taken off in tax, so for us its about £675 per year in tax.
Hope this helps.

HRV

Your calculation will be done after the extra tax you pay for your company car.

Just a note for you to consider we have found that by considering our car choice very carefully we can save ALOT (over 150 quid a month). We changed from a Toyota Verso to a BMW 3 series estate (2nd hand) and saved £150 a month- beacuse the emmissions on the BMW are sooooo much lower that the Toyota. This is definately worth looking at if you have a choice of car.