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

sunshinetours

It will almost certainly NI'able if paid as part of your salary, however if you are a 40% tax payer you may already be paying the maximum maintream NI rate and so you will only pay the 1% higher rate NI so yes you can almost ignore it!

What mileage rate will you get as that really also affects your overall position

gggareth

Well i made it 400 a month..


Roughly speaking you pay 31% Tax and Nat Ins.

4700/.69=3243

/12 = 270.25 per month..

+ the £130 tax you will save..

=£400

Or am i totally off!!!

did not allow the extra tax on the 130!!!

Grm has it buttoned down..

GRM

Using http://www.thesalarycalculator.co.uk and a salary assumption:

Before: 45k salary = £2726 take home per month
After: 49.7k salary = £2953 take home

Difference = £227

£227 + £130 tax no longer being paid = £357/month

GRM

gggareth wrote: »

Well i made it 400 a month..


Roughly speaking you pay 31% Tax and Nat Ins.

He's a higher rate taxpayer.

getmore4less

gggareth wrote: »

Well i made it 400 a month..


Roughly speaking you pay 31% Tax and Nat Ins.

4700/.69=3243

/12 = 270.25 per month..

+ the £130 tax you will save..

=£400

Or am i totally off!!!

did not allow the extra tax on the 130!!!

40% tax payer so 41% tax and NI.

20vt-rs

getmore4less wrote: »

40% tax payer so 41% tax and NI.

Perfect, thats what I didn't know, thanks guys who pointted this out! I work it out that including my tax saving from my current car then I'll have £361.08 per month to spend on the car and run it.

Now decisions, what to get!

bigjl

Several senior managers in the London Ambulance Service have gone for Skoda Vrs diesel and report decent comfort, good handling and well up to deiving 30k a year.

Others have 320d estates or saloons and another couple haveAudi A4 with the 2.0tdi lump.

Managers that don't have blues fitted seem to have Volvo V50's in eco spec.

A large private ambulance company that does 999 work in and aeound Southampton have seven Vrs estates all diesel, all used nigh on 24/7 and have been trouble free. Not sure about fuel.economy though.

The HEMS cars, London Air Ambulance, have the petrol VRs but they have some donated by a Skoda dealer and lease the rest.

They rate them.right up there with the WRX's they had in 2003/6.

But much more comfy.

20vt-rs

A work colleague has an Octavia VRS petrol, it's very ncie and goes really well - I'd want something diferent though I think. Love the look of the Focus ST, being over 2ltr I also get a decent p/pm rate (8p more than 2ltr and below) - I don't fancy a boring car!!

20vt-rs

Hello again people - I wanted to resurrect this thread, as I have managed to retain my co car since 2011, however it really does look like the allowance is my only option moving forward soon. The good news on this is that the allowances have changed slightly, so I wanted to check my calculations with others, and to see if the mileage rates are any good, because they are very different to before:

- New allowance is £7300 per annum, paid into salary and taxable (40%).
- 40ppm for the first 5k miles and thereafter 12ppm
- My last mileage check I did 16k total in a year and 12k of these were business.

I am considering getting a personal lease with maintenance, as I would like the peace of mind that everything is covered apart from the insurance! Is this a good option, I do get bored easily so a change of car every few years is good! Down side it looks like you have to stump up a hefty deposit on sites I have looked at.

Based on this, I think that I'd have to hit 25mpg to break even on the mileage, so I have an option of getting a thirsty car if I wanted or to get a fuel efficient car to make some up.

Monthly allowance wise, I think I'd get £358 per month after tax, but adding my existing BIK of £136 I'd clear £494 a month.

Hoping my maths is correct
Feedback appreciated...

From_St_Neots

Have you thought about buying your current company car when it expires and then taking out a plan to cover maintenance etc. RV on cars are low which is why more companies are opting for car allowance.

Lease firms balance RV with lease payments, as RV are low the monthly payment increases which your employer absorbs.

As RV are low you should get to buy the company car at the end of the lease for a reasonable price.