Car allowance = How much to spend?

tangellow

Sorry guys another company car allowance thread.

SIMPLE FACTS: £7000 car allowance per year. Higher rate tax payer. approx 15,000 business miles per year. Claim business miles at HMRC rates. low private miles (3-5k/yr).

In reality how much have I got to spend per month on a car, all in.

I'm thinking £350 max on a PCP car that will do in excess of 45mpg on a combined cycle.

Does anyone have any experience of similar figures and how it works in reality? I would like some change out of my £7k per year plus milage claim!!!!!!!

Flyboy152

The total amount works out at about four hundred and eighty pounds per month, net.

hands2bfree

hi,

im kinda new to all of this car allowance, tax and benefit in kind.

could do with some basic help:

i have been offered a job of £35K with a £5K car allowance.
what would i take home after tax with this?
i also get a fuel card but details of business to private mileage yet to be defined.
i will be doning a commute of 100miles everyday.
private 8000 a year
business 25000

any help would be greatly appreciated...

im meant to be offered the job in the next few days.
and i need to know what im accepting

thanks

:j

Flyboy152

Your tax and NIC liability is £1,600.00 per annum, leaving you with £3,400.00 per annum (or £284 per month).

If you had a company car (E.g. A Ford Mondeo 2.0 DCi Titanium, P11d value £21,855) your tax liability would be £4,371 for the car (working out as £364 per month). If you had private fuel, the liability would be a further £3,600 (or £367 per month).

So, your net available spend is (if you take into account you won't be having a compnay car), £648.00 per month (excluding fuel).

If you are given a fuel card and your employer doesn't have a special arrangement with HMRC, the full cost of the fuel on the card is charged as a benefit and you can claim relief at the usual HMRC rates of £0.40 per mile for the first 10,000 business miles and £0.25 per mile after that (you can add in £0.05 per mile, if you carry any pasengers for business).

hands2bfree

im having a blonde moment.. how do i end up with £600+ a month to spend on a car allowance?

is this from £284 from car allowance + what i would claim back on fuel tax?

thanks ....

Flyboy152

No, that is your allowance, plus what you save from not paying the tax on a company car.