Company car tax driving me batty....

thechippy

Hi,

As he is not there yet, I left the dates blank so it assumes a full tax year. 2011/2012.

If he wants the job he would join beginning of next month, but calculating accurate take home is crucial.

Thanks for your time so far, I find this very confusing (and it's for someone else - lol)

BoGoF

I suggest you go back to the benefit calculator and take the start date as 1/8/11 then do a similar calculation as I did with the actual figures. He may not hit the higher rate bracket this year but may next year so a figure for this year may not be accurate for next.

It is confusing !

jimmo

Bogof's calculation in post #11 is probably as good as it gets because it gives the annual rate of tax your friend will suffer. It is not accurate because the operation of PAYE takes account of previous earnings and tax paid and we don't have those figures.
Also, if your friend starts this job on 1 August it is extremely likely he will have the standard coding of 747L for at least 2 months. His new employer will have to submit a form P46 Car to HMRC and his coding will be changed to take account of the car and fuel benefits when HMRC deal with that.
It is therefore very likely that your friend will be paying insufficient tax for some time but then he will probably be put on a month 1 basis coding for the remainder of the year.
Then his PAYE tax deductions should match up with Bogof's figures.
national Insurance rates are here.
http://www.hmrc.gov.uk/rates/nic.htm
You need to consider employees primary Class 1.
Now, just to make life interesting, you haven't mentioned superannuation.
That could change everything.

thechippy

superannuation

Christ, what's that??

Anyway,
Thanks guy's, you've been great and I appreciate your time.
I'll go back to the calculator again.

He can get away with another week before accepting anyway.

I really do appreciate this and will get back to you if I have any more annoying questions.....:D......:beer: