company car and taxable income

SayWhatYouSee

Hi, I earn £42.5k a year and I pay more than £300 into my pension each month, which makes my taxable income (as indicated on my salary slips) around £39k. I also have a company car.

If I add my taxable income (£39k) plus my expected interest from not inconsiderable savings, the total comes to less than the £43,875.

However, is my company car counted as taxable income, which would take me into higher rate, or is it just used to calculate my tax code?

Sorry for ignorance, I feel I should know this

Thanks in advance.:)

dori2o

SayWhatYouSee wrote: »

Hi, I earn £42.5k a year and I pay more than £300 into my pension each month, which makes my taxable income (as indicated on my salary slips) around £39k. I also have a company car.

If I add my taxable income (£39k) plus my expected interest from not inconsiderable savings, the total comes to less than the £43,875.

However, is my company car counted as taxable income, which would take me into higher rate, or is it just used to calculate my tax code?

Sorry for ignorance, I feel I should know this

Thanks in advance.:)

Yes, the taxable benefit is part of your total taxable income. So if your 'income' after pension contributions is £42900 and your car benefit is £5000, then your taxable income would be £47900.

SayWhatYouSee

Thank you Dori2o. I had hoped not, but never mind