Tax allowance for company car

Nicknack_2

hi,

thanks for all the advice in my thread: "using my own car for business purposes".
I am thinking ahead here, but there should be the chance of a company car in the future. I've had a nose around the hmrc website and it doesnt look as straight forward as using your own car and claiming the difference (in payment from employer and hmrc rates) - or is it?

At first, I thought it was, but upon reading the advice it mentions using the company car for private use. If i were offered a company car, i would be able to use it for private use, but still have to pay for the fuel for business.

Hope this makes sense, and thanks for reading!

Any

Right-if you get a company CAR (not van), then unless the car is a pool car and stays at business premises over night, private use is autamatically assumed and therefore you will have to pay tax on this "benefit".
This is calculated by applying certain % (which is dependant on CO2 emissions of the vehicle) to a list price of the vehicle. So the amount payable will be dependant on the vehicle.
Regarding the fuel-if you will pay for all fuel and claim back business mileage, HMRC issues rates @ pence per mile (which change from time to time reflecting cost of fuel) that you can claim back. These depends on the size of the engine and which type of guel is used (diesel, petrol).
If the payment paid by employer for this differ, then there can be tax underpayment or claim.
There are other ways of treating cost of business fuel, but this one is probably the easiest to follow.

Nicknack_2

Any wrote: »

This is calculated by applying certain % (which is dependant on CO2 emissions of the vehicle) to a list price of the vehicle. So the amount payable will be dependant on the vehicle.

The car I am looking at has an on the road price of 24K and CO2 figure of 149.

Any wrote: »

Regarding the fuel-if you will pay for all fuel and claim back business mileage, HMRC issues rates @ pence per mile (which change from time to time reflecting cost of fuel) that you can claim back. These depends on the size of the engine and which type of guel is used (diesel, petrol).
If the payment paid by employer for this differ, then there can be tax underpayment or claim.
There are other ways of treating cost of business fuel, but this one is probably the easiest to follow.

Is this different to the 40p for first 10K and 25p thereafter? Just trying to work out if its better to have a company car, or not!

Thanks for reading!

Any

You can get the tax figure on calculator on comcar.com or.co.uk. Sorry, I am only writing on my Iphone so it is difficult for me to set it up for you.
The fuel calculation is completely different from 40p, yes. Because you will now have car someone else is paying for, so you will only get money back only on fuel-the 40p/25p is also paying for the wear&tear of your own vehicle.
I always say-if u like nice shiny car every 3 yrs and no hassle with insurance/servicing (usually paid for by employer) you are usually better off with comp car. (if u go with low CO2 car especially), but if u don't mind driving old banger you might be better off with claiming business mileage on private car.

Any

It's Comcar.co.uk. Very good site. Will also advise on what cars have low emissions for example..

Nicknack_2

Hi there,
Many thanks for this. I'll. Do the maths and see, although guess a company car is the way forward for me!