Company car advice

andyb_sv

Hi,

I'm hoping someone may be able to clarify a few things I currently have a company car which will be up for renewal in September 2012, my company offers a scheme where you can opt out and use your own car for business purposes but I need some clarification on a few points:

• The company will pay me about £500pm to use my own car
• I'll be reimbursed 18p per mile for business mileage covered
• I can join the company car insurance for about £50 per month
• The car cannot be more than 4 years old
• The car has to be an estate!

I'm not sure whether I would gain (even a small amount) by getting my own car and using it for work. Some people have said that I can claim the difference between 18p per mile which the company will pay me and 45p per mile (which HMRC recommends for 1st 10k miles) back from the government but I'm struggling to see why the government would pay the difference (or is it the tax back on the difference?).

Are there any catches etc I need to be aware of, apart from Co2 emissions etc?

Thanks,
Andy

marlot

THe big one is that you'll be taxed on your 500pm

Whether its worth it depends on your annual mileage. If you do lots, stick with the company car. If little, your own one can pay.