Pickup or personal purchased car fuel Tax

wayne916

Little new to this company car thing, so a little help would be apreaciated.
I have been offered a company pickup 2006 redeo 3.0l desiel. I belive my taxable allowance is £3000 and if I get fuel paid for by my employer for both private and business miles, tax = £500.
I am in the 40% Tax band, and i only cover approx 7000 miles a year, which 80% is private milage, ie to and from work etc
My question, am i rite to think i only pay 40% tax of £3000 + £500, therefor the cost to me would be a total of £1400 deducted from my wage packet?
Question 2, if i purchased my own vehical hummer H3 2006, and i was to get fuel paid the employer, what would be the fuel tax to pay?

If i do only pay 40% tax of the fuel duty, say it was £1000, doing 6000 private miles would cost me paying for my own fuel £1423.12 were as the company paying for the fuel,and i pay 40% £1000 = £400. ( based on 23mpg and fuel £1.20 liter)
Is this a to Naive Assumption.

Murdina

You are right that you pay 40% on the 2 amounts mentioned (which I assume do apply to the vehicle in question - the van definition thing is a tricky one!)

So in terms of cash in your pocked you are getting fuel and van paid for totally for £1400 per annum (if you go this route do check your notices of coding to make sure this is taxed correctly).

If you buy a vehicle yourself the issue is how much your employer will reimburse you for using it for business. If they reimburse you more than 40p a mile for the first 10,000 miles and 25p a mile after that you pay tax on the excess as if it were extra pay.

If they pay you less than these amounts, you can claim the difference as a tax deduction. If they give you nothing, you can claim the full amount.

Have a look at this leaflet:

http://www.hmrc.gov.uk/mileage/employee-factsheet.pdf

So until you know what they would give you you cannot finally do the sums needed to compare the 2.