Help! Can't work it out!!!

nickmcmechan

My company car is due for replacement and I can't work out whether to get the petrol or diesel version of the model I'm after.

Help!

Here's the facts

Petrol - 34mpg, can claim at 17p per mile

Diesel - 43mpg, can claim at 14p per mile and have to pay an extra £100 pcm to get this model over the petrol.

BIK tax is about the same for both.

Annual mileage is 45000 per annum and vehicle is replaced at 90000 miles, so likely to have for 2 years..

Head is bursting trying to work this one out - help!

bob_a_builder

Should also be able to claim the tax back on the difference between what milage rate company pays and and the HMRC rate of 40p(ish)/mile

Surely BIK will affected by Co2 output - usually quite different between petrol and diesel

also check "cutting tax" section - this comes up quite ofte there, plus some links to calculator sites to IIRC

also LINK

xBubblesx

The diesels usually work out best.

Flyboy152

bob_a_builder wrote: »

Should also be able to claim the tax back on the difference between what milage rate company pays and and the HMRC rate of 40p(ish)/mile

Surely BIK will affected by Co2 output - usually quite different between petrol and diesel

also check "cutting tax" section - this comes up quite ofte there, plus some links to calculator sites to IIRC

also LINK

Diesels are three percent higher than the petrol equivalent and generally cost about a thousand pounds more to buy. So, although the CO2 is lower, the supplements often work out about the same.

nickmcmechan

Flyboy152 wrote: »

Diesels are three percent higher than the petrol equivalent and generally cost about a thousand pounds more to buy. So, although the CO2 is lower, the supplements often work out about the same.

Yep, spot on, because the P11d value is factored in as well as the Co2, the BIK works out aout the same, only a few quid different.

Because I have to fork out an extra £100pcm for the diesel version (the extra 3% pops it into a higher p11d and therefore the higher pay grade is eligible, so I have to pay the extra £100 to 'trade up' to get the diesel) I can't work out if I'd jsut be better off getting the petrol or diesel.

nickmcmechan

So, for Diesel

I do 2500 miles per Month on Average.

I can claim @ 17p per mile, therefore I will, on average, claim £425 per Month for Fuel.

Now, the Diesel model comes in a 43mpg = 0.02gpm = 0.11 litres per mile

Therefore, I will use 275 litres of Diesel per Month @ £1.32 per litre meaning the cost of Fuel per Month will be £363 per Month

I will claim back £425 per Month, therfore I will have £62 per Month in my back pocket.

However, I will have to pay an extra £110 per Month to trade up to the Diesel Model, therfore in reality I will have to fork out £48 per Month to run the Diesel, in effect

Have I worked this out right?

nickmcmechan

So, for Petrol

I do 2500 miles per Month on Average.

I can claim @ 14p per mile, therefore I will, on average, claim £350 per Month for Fuel.

Now, the Petrol model comes in a 34mpg = 0.03gpm = 0.13 litres per mile

Therefore, I will use 325 litres of Petrol per Month @ £1.26 per litre meaning the cost of Fuel per Month will be £410 per Month

I will claim back £350 per Month, therfore I will be £60 per Month out of pocket

So, for the Diesel, even though I have to pay an extra £110 per Month to trade up to this model, I would only be £48 per Month out of pocket compared to £60 for the Petrol, therefore I am actually better off paying out the extra for the Diesel Model?


Have I worked this out right?

Flyboy152

bob_a_builder wrote: »

Should also be able to claim the tax back on the difference between what milage rate company pays and and the HMRC rate of 40p(ish)/mile

Surely BIK will affected by Co2 output - usually quite different between petrol and diesel

also check "cutting tax" section - this comes up quite ofte there, plus some links to calculator sites to IIRC

also LINK

Sorry, I don't know how I missed this earler, but you can only cliam that rate if you are using your own car.

The fuel only rate (if it is not provided for with a company car) is far lower. For cars with engines between 1.5 to 2.0 it is 12p for diesel and 15p for petrol. For cars over 2.0, it is 15p for diesel and 21p for petrol. So, the OP can only claim the difference he is being paid for and the official HMRC rates.

Flyboy152

nickmcmechan wrote: »

So, for Diesel

I do 2500 miles per Month on Average.

I can claim @ 17p per mile, therefore I will, on average, claim £425 per Month for Fuel.

Now, the Diesel model comes in a 43mpg = 0.02gpm = 0.11 litres per mile

Therefore, I will use 275 litres of Diesel per Month @ £1.32 per litre meaning the cost of Fuel per Month will be £363 per Month

I will claim back £425 per Month, therfore I will have £62 per Month in my back pocket.

However, I will have to pay an extra £110 per Month to trade up to the Diesel Model, therfore in reality I will have to fork out £48 per Month to run the Diesel, in effect

Have I worked this out right?

What size engines for either cars?

Better still, which cars specifically are you considering?

nickmcmechan

Thanks for the reply.

The car in question is the Honda CR-V.

The petrol comes in at 2.0 litre and the Diesel at 2.2litre.

I've also just checked the BIK and it is £10 more per Diesel.

If my calculations are indeed correct then the actual cost of having the Diesel is the same as the Petrol even though I have to pay an extra £110 per Month to own the Diesel!

Kilty_2

nickmcmechan wrote: »

If my calculations are indeed correct then the actual cost of having the Diesel is the same as the Petrol even though I have to pay an extra £110 per Month to own the Diesel!

Get the petrol then - why subject yourself to tractor noise and diesel smoke if there's no financial benefit? :rotfl: