Cost of a company car

Duncombe

gifster83 wrote: »

I need a family car with a large boot, so hence the higher company car tax, but still cheaper than insuring my current car...

Ok. My BF's car. 59 plate VW Jetta. £120 road tax... A YEAR.

gifster83

Duncombe wrote: »

Ok. My BF's car. 59 plate VW Jetta. £120 road tax... A YEAR.

Road Tax and Company Car Tax a very different things. Road Tax pays pays for the upkeep on the road infrastructure and Company Car Tax is a BIK (Benefits in Kind) tax to cover what you would pay in Income Tax.

Duncombe

gifster83 wrote: »

Road Tax and Company Car Tax a very different things. Road Tax pays pays for the upkeep on the road infrastructure and Company Car Tax is a BIK (Benefits in Kind) tax to cover what you would pay in Income Tax.

Apologies, I read your initial post as "road tax" not "car tax"..which is why I got so irrate at potential road tax in the maximum band!

I like 'green' cars

gifster83

Duncombe wrote: »

Apologies, I read your initial post as "road tax" not "car tax"..which is why I got so irrate at potential road tax in the maximum band!

I like 'green' cars

I think the average company car tax is £120+ a month. But a lot of company car are big BMWs / Mercs that cost a fortune per month.

mambury

My OH has a 56 plate Avensis estate. He needs a company car as he drive approx 2500 miles a week. The 'benefit in kind' car tax equates to approx £60 pcm and is paid for via his tax code (so payment is taken as a lump with the rest of tax). We were paying approx £100 a month for a newer car recently. It is not cheap to have a company car for either the company or the employee.

Premier_2

gifster83 wrote: »

... Road Tax pays pays for the upkeep on the road infrastructure ...

Whilst the main point of your entire post was correct, I wish this was actually the case

Unfortunately the facts are the money actually just gets thrown into the total tax pot and spent as the government feels fit.

e.g. this example suggests where quite a bit of our money was spent on the odd case or two ...literally :cool:
http://news.sky.com/skynews/Home/Politics/Call-To-Release-Details-Of-Governments-864000-Wine-Cellar-Tom-Watson-MP-Appeals-To-David-Cameron/Article/201008215679625?

FatAndy

The tax you pay depends on the list price of the car (not what your employer actually pays for it), the level of CO2 emissions, whether it runs on petrol or diesel and also what rate of tax you normally pay.

HMRC have a car benefit calculator - http://cccfcalculator.hmrc.gov.uk/CCF0.aspx - which will allow you to work out how much the tax will be on a company car.

Basically if you're considering a car with a list price of around £20k and emissions of 153 g/km then for a petrol car you'll be looking at a benefit in the region of 20,000 x 19% = £3,800 so for a 20% tax payer this would cost about £760 pa (£3,800 x 20%). For a diesel the benefit would be 20,000 x 22% = £4,400 so for a 20% tax payer this would cost about £880 pa.

If your employer supplies fuel for private use there'll be more tax to pay on that (you can use the HMRC calculator to work out how much this will be).