Company Car?????

TheSavingGuru

What model is it exactly?

I assume your company supply your car insurance? How much will the insurance cost you on the alfa?

Fluffy3478

Mito... About 1000 for business

Fluffy3478

No the one i want will cost £260 a month i get staff pricing!!!

TheSavingGuru

I mean including servicing, fuel, insurance and general maintenance....

taxing

Fluffy3478 wrote: »

Hi All,

Newbie wanting your help!!!

Ive got a company car at the moment with a fuel card. Which includes private use.

So im wonder if its better to take a £300 allowance or carry on the with company car. I say i do roughly less than 3000 private miles a year.


Any advice

At the moment you will have a taxable benefit in kind and also a car fuel benefit in kind and you are paying tax on these at your marginal rate of tax (20%, possibly 40%).

That is the cost to you of having the company car.

In it's place you are being offered £300 a month which will be subject to tax and national insurance. Assuming you pay tax at 20%, you will have (from April) 20% tax and 12% nic deducted ( 300 x 32% = 96 so left with 300 - 96 = 204 net pay). The £204 net pay doesn't quite cover that £260 a month you were thinking of spending?

You haven't said, but I assume you will also be paid your business mileage. The rate for first 10,000 business miles has just gone up from 40p to 45p. So, and if your employer pays this maximum rate (he doesn't have to) you will get 8000 x 45p = £3,600 reimbursed to help against the cost of the fuel. If even through the year, that would be £300 a month mileage allowance (which IS tax free) and is meant to include an element to cover the depreciation of your car.

Of course, the employer may just be leaving you with the fuel card? here you will have to pay back the private use element or be able to prove that the fills are only for business running (hard to prove).

Then you will have the car maintenance and insurance to pay for, and road tax.

BTW - if you are having car and car fuel benefits at the moment, then your code looks too good (unless the car has very low emissions, and you don't get fuel benefit after all)?

Regards