Company Car Question / Confusion

stuartbrookes

Hi,

Hoping someone can help me here... I'll keep this simple so as not to ramble on.

- I'm a higher rate tax payer
- Have a company car, Toyota Prius T-Spirit, to which I contribute £120/annum on top of the car allowance given to me by my company. I take this as opposed to a £6k pa car allowance.
- The P11D tax for this is circa £80/month

Just got a new job with a significantly higher car amount, £9k pa car allowance or a company car, however I can only pick from a BMW 330d M-Sport or Audi 2.7 TDi SE.

According to ComCar, the P11D tax for those is £310 and £270/month respectively...

Is it really that simple? IE, moving to the new job with the bigger car allowance, but staying on a company car, is going to cost me £200 - £230/month more? In other words, 70% of my potential new pay rise is gone as soon as I take their car.

I really didn't want to get a private PCP or private loan agreement for a car, but based on the above, I don't see what choice I've got.

Any ideas? Am I calculating it wrong, am I forgetting something stupid?

malcindebt

It is due to the large difference in the list price and the CO2 emmissions of the cars you are looking at.

The benefit is calculated by multiplying the cars list price by a percentage based on the cars CO2 value.

As the prius is a hybrid it has a co2 value of only 92g/km which means that the list price of the car is only charged at 10%

so with a list price of £23990 the BIK would be £2399 so tax at 40% would be £955 per year

The BMW however has a list price of £35350, and a CO2 rating of 152g/km therefore the list price is charged at 23%.

Unfortunately the difference is quite big, but to be expected with a difference in the list price of over £10k and 13% difference in the CO2 charge.

getmore4less

if you take the allowance what are the parameters for a car you have to provide?

edit; you forgot the £120(net), your current car costs you £200.

stuartbrookes

Absolutely no parameters, albeit its got to be in good condition as my role is customer facing, so turning up in a banger isn't an option - lol.

We've done some maths, I reckon if I got a PCP/Lease/Loan that cost me about £450/month inc insurance, that'd we'd be about £200/month better off, so over £7k on a 3 year total cost.

However, we've got a little baby coming in January and my fiancee is dead set against the idea of committing to any form of contract/lease/loan when I'm just starting a new job and we've got a little one on the way, plus debt we're already servicing. I can sort of see her view really.

getmore4less

stuartbrookes wrote: »

Absolutely no parameters, albeit its got to be in good condition as my role is customer facing, so turning up in a banger isn't an option - lol.

We've done some maths, I reckon if I got a PCP/Lease/Loan that cost me about £450/month inc insurance, that'd we'd be about £200/month better off, so over £7k on a 3 year total cost.

However, we've got a little baby coming in January and my fiancee is dead set against the idea of committing to any form of contract/lease/loan when I'm just starting a new job and we've got a little one on the way, plus debt we're already servicing. I can sort of see her view really.

With debts finance is an issue if you lose income,

what sort of miles? how many customer visits?

What sort of car do you need(estate etc).
with lack of criteria a cheap older model high mileage with private plate will look ok.

I guess if the company are BMW Audi a great skoda won't go down well.

I would focus on the debt issues and look to fix those.