Car allowance - Calling all tax guru's and petrol heads !!

20vt-rs

Thanks for the replies so far guys – I didn’t realise that earnings were up at £43875 before 40% kicked in, I will be just shy of this so will remain on 20% I presume… Just for clarification, and as Sunshinetours says, I will get a monthly amount based on £4700 per annum (Say £230 for example), I will also be saving my £65 of BIK tax on the current car, so probably around £300 per month available. I’m looking at spending £7k, based on what I can save over the next few months and what my current weekend car is worth if I sell it. I don’t really want to get a loan, finance or PCP and would like to keep the £300 per month in an account to cover insurance, tax and for repairs, tyres and depreciation to cover my next car. I need a decent looking car as my role involves visiting some big clients, and I don’t want to turn up in a beaten up nova or anything! I like the idea of the Merc, but it’s way out of my price range Bigjl L

Being a petrol head I am thinking of getting a quick but economical petrol car, but I'm struggling to find one over 2ltr, under and the rates are poor...

sunshinetours

BMW 320d - under 2ltr but decent mpg and power and surprisingly quick if you try one. Problem may be finding a decent one in your budget (probbaly 2006 with high mileage territory I would guess). Would fit the bill for looking the part at big clients etc

325d has a 3 ltr engine but would need to check out the comparative mpg and road tax etc - plenty plemty quick enough

With your mileage I would go the diesel route personally and try and but a small petrol run around in time to satisfy your petrol head craving!

atrixblue.-MFR-.

what about a used volvo, s40/s60. 2.0 T petrol to a 2.4 diesel 1.9-2.4? exec car comfort and a decent BHP. although i doubt you have enough dosh
for a s40 R Design though if memory serves me a 06-07 R design is in the region of about £6895-7995.

20vt-rs

sunshinetours wrote: »

BMW 320d - under 2ltr but decent mpg and power and surprisingly quick if you try one. Problem may be finding a decent one in your budget (probbaly 2006 with high mileage territory I would guess). Would fit the bill for looking the part at big clients etc

325d has a 3 ltr engine but would need to check out the comparative mpg and road tax etc - plenty plemty quick enough

With your mileage I would go the diesel route personally and try and but a small petrol run around in time to satisfy your petrol head craving!

I had a BMW 320d a couple of years ago as a company car, they are very nice and go very well. The one I had was an 06 M sport spec, probably too much for me at the moment? But I will look. My aim is not to have two cars really, I could keep my current petrol head toy, as it's not worth a great deal, it's the having to insure, tax and service two cars that I don't want. At the moment it's ok with a compacny car but when it's all out of my pocket it's not so nice! Thats why I thought a petrol good all rounder so I can feed my petrol habit!

20vt-rs

atrixblue.-MFR-. wrote: »

what about a used volvo, s40/s60. 2.0 T petrol to a 2.4 diesel 1.9-2.4? exec car comfort and a decent BHP. although i doubt you have enough dosh
for a s40 R Design though if memory serves me a 06-07 R design is in the region of about £6895-7995.

Don't the volvo's have the same engine as the Focus ST? 2.5 5 cylinder turbo? How economical are they, as the focus reports on a quick google doesn't look good! Some people have named their cars Oliver after the beer guzzling Oliver Reed

Zeitgeist

You have to also take into account that if you get a car allowance, the company will treat it as a company car but HMRC will treat is as your own car. The car allowance is just salary you see to them. So you will be to claim the tax difference between 40p a mile for the first 10k miles and 25p for mileage after that and what the company gives you - 15p/21p a mile. So you can get quite a bit of tax back.

Lum

Does it have to be a hot hatch or would a sporty saloon do? You could get a nice 2.5T Subaru Impreza for that sort of money, and still come in above the MPG ceiling provided you drove it sensibly.

Golf R32 would be another option. Gets 36mpg on the motorway allegedly. Not so good around town though.

20vt-rs

Zeitgeist wrote: »

You have to also take into account that if you get a car allowance, the company will treat it as a company car but HMRC will treat is as your own car. The car allowance is just salary you see to them. So you will be to claim the tax difference between 40p a mile for the first 10k miles and 25p for mileage after that and what the company gives you - 15p/21p a mile. So you can get quite a bit of tax back.

Yes I read this on the HMRC web site, I presume this is claimed back at the tax rate of 20%? I als read that you can claim an extra 5p per mile for carrying passengers which is handy, as I often do...

20vt-rs

Lum wrote: »

Does it have to be a hot hatch or would a sporty saloon do? You could get a nice 2.5T Subaru Impreza for that sort of money, and still come in above the MPG ceiling provided you drove it sensibly.

Golf R32 would be another option. Gets 36mpg on the motorway allegedly. Not so good around town though.

Sporty saloon definately considered, hadn't thought about the Impreza's, but I have a feeling they are low service intervals...? R32 is bad tax band @ £410 a year I think! I thought of madza 3mps bt this is the same too...

atrixblue.-MFR-.

20vt-rs wrote: »

Don't the volvo's have the same engine as the Focus ST? 2.5 5 cylinder turbo? How economical are they, as the focus reports on a quick google doesn't look good! Some people have named their cars Oliver after the beer guzzling Oliver Reed

yes and no.


some trueth in the fact that volvo developed the 5cyl turbo engine in with ford team.

but the s60 s40 2.0T have two different engines entirely.

worth a look at the R design lovley looking car in and out.

the 1.8 volvo s40 group insurance 10!