Child Tax Credits and a company car

cram

Wonder if some one can advise me.

I have a company car, I have always said, that yes i pay a lot of TAX for having it, but no one could run a £21k car and get a new one every 2 years, so in that sense it is a perk.

How ever its a tool for the job, i drive 40k miles a year and probably 37k is for business, you would not tax a mechanic for a spanner even if he used it for his own use once in a while.

I also get my private fuel paid for by the company, which again i am taxed on, i would be better of paying for the private fuel myself, but this is down to company fuel.

When me and my wife decided to have a child, we only wanted one, but had twins, love them to bits and would not changed thing, even though we didnt opt for two children this is what it is. I believe children should be given the best start in life irrespective of the parents, children come first, so we bought a bigger house so they could each have their own bedroom. my wife works one day a work so rest of the time she can be at home with them, to me why have children then put them in nursery all week, My net pay is £2k and my wife works part time and her net pay is £700 and we just manage, but nothing for saving or holidays, and on top of that we get about £100 in child tax credits.

My problem is that when they work out the childs tax credits they take in to account what the company car is worth in payment, which takes me over £44k, even though i dont earn that so i believe that we will loose child tax credits, also we pay £300 a month for one day at nursery a week but its for two, i know in april next year we get 15 hours free (thats if they dont stop that)

What annoys me is that two parents could work full time and both earn £43k and not loose child tac credits, but we will.

Is their anything we can do?

It does annoy me the amount i pay in tax, i am 33 been in a job all my life, paid taxes etc, only thing i ever claimed is child tax credits and cameron says this is fair, he needs to live in the real world.

sgm31

Cram,

That is most strange all that you have discribed is almost identical to myself and my family, we too get very little tax credits as it is and just about scrape by on overdraft every month.
I totally agree about the company car and for me pmi also falls into bik.
What i struggle to understand is that recently friends of ours who once again have very similar circumstances and the same take home pay to us were talking to the HMRC about tax credits. Now i am employed and when the HMRC have asked for all my details they have always wanted the figure before tax + BIK then worked out what they will pay my family from there.
Our friends on the other hand were asked what the take home pay was and it was then worked out from there, like i said there is no difference in our usable pay (around 2k pm) the only difference between us is he is self employed, now the HMRC are paying them 4 times what i am paid in credits.

Does anyone out there know why this could possibly be?

All i hear lately from my wife is how its all so unfair yet i have no explaination to give here................

bigjl

Two newbies in the same situation posting on a thread within half an hour of each other, surely not.

I don't get a company car, but many people have a £21k car and only do 3000 miles a year, they have to pay out thousands in Insurance, road tax, fuel and depreciation. You don't therefore you have to pay tax on the benefit that you have in having a company car.

To be perfectly honest this thread comes across as an Investigative Journalist or a Troll.

sgm31

Sorry i didn't know i was not allowed to be new!!!!!:mad:

I am just another ordinary person looking for an explaination from people out there that may have more of a clue than me.

The only reason i posted was becuase i found it very strange that some one was in the same situation as myself and i also had a question to ask to go with it.

Maybe i will go and make 100 random posts to get my post count up so you don't have to have a dig at me.

Thanks for at least reading the post before you made your assumption :T

BTW what is a Troll?????

HRV

I vouch for the situation described. We are the same too with company car and fuel tax! He drives 50k a year

168hourweek

You are paying more in tax than you would for your private fuel
Get a cheaper lower co2 car next time you change
This will save you money and lower you P11D total

jlpike

Having a company car is a huge perk, I know I have one and the BIK is much less than what it would actually cost to buy insure etc unless you are diving a 6 litre monster.

There is much you can do. Go for a very low Co2 car. You can still get some very nice marques (BMW) etc with low C02

Dont get private pentrol - You are paying more in tax than it is worth. There are 2 ways round this:
1) Use the company petrol and declare private miles every month to payrol which they deduct from your salary every month. Many at my place do this.

2) Pay for your own petrol and claim in expenses for business biles from your employer. This will normally be at the set government rates but if your emploter gives you less you can claim back the difference in your tax so you will not pay for business fuel.

In both examples above your employer will be better off and you will be much better off.

You can also get your employer to offer you salary sacrifice nursery vouchers. This has a double whammy because it is net of NI and tax so saves you 30-40% instantly and will reduce your taxable earning maybe below the 40% threshold saving you £1700 in CB which is teh equivilent of around £3000 salary.

Your emploer will also be better off because they wil save 11% emplyoer NIC although it will costs the 8% to join the scheme.


Thefore if you do this right you can save yourself £5k to £7k in terms of salary for very little effort

dieselandtyresfordinner

Why should the children have to suffer because of a company car,
my personal situation is, i am a field based service engineer, meaning if the car is not used for privately then no tax is due, but
the company i slave for don't give a flying *%$* about family values
(although they bleet on about it in the media) they will not prohibit private use, eventhough the car is full of spare parts 24/7, i was originally given use of a van, but due to the fasard of company image i must use a car to do my work, therefore i have to pay paye tax of £1400gross and forfeit £1950 tax credits, i have a salary of £17500pa and have 2 kids, on this crap wage,paid by an equally crap company the kids would get free school meals, i would get free everything, why do i have to pay twice for the same thing,and receive nothing in benefits
the governments harking on about child poverty, b*&&*%*s, i would be better off financially sponging off the tax payer, but i have pride, but it sickens me when a see wayne and waynetta slob spending MY unjustified purge of tax.....change the law now, stop robbing me
blind:mad::mad::mad::mad::mad:

Duncombe

dieselandtyresfordinner wrote: »

I have a salary of £17500pa and have 2 kids, on this crap wage,paid by an equally crap company the kids would get free school meals, i would get free everything

On a salary of £17.5k no, you wouldn't.

dmg24

bigjl wrote: »

Two newbies in the same situation posting on a thread within half an hour of each other, surely not.

I don't get a company car, but many people have a £21k car and only do 3000 miles a year, they have to pay out thousands in Insurance, road tax, fuel and depreciation. You don't therefore you have to pay tax on the benefit that you have in having a company car.

To be perfectly honest this thread comes across as an Investigative Journalist or a Troll.

Now there are three of them, each of whom use a lower case i rather than I. Quite bizarre!

butler_helen

DMG the answer is probably 'yes' to your signature!