Company car tax

thechippy

Sorry guys,

Still getting confused with this.

I know the car I want, price / co2 etc.

I used the hmrc calculator and it says,
Car benefit charge £3,740
Tax liability £748 (@20%)

This is based on the fact that I pay my own private fuel.

So, do I get 748 taken off my personal allowance, or 3,740??

Christ, can't they make this stuff in plain English, or am I being totally thick here.......:D

Thanks

BoGoF

£3740 gets taken off your allowance.

thechippy

Thanks,

So what is the £748 all about?

agrinnall

Reducing your tax code by 374 (£3740) means that you pay an extra £748 tax if you're on basic rate.

BoGoF

Assuming you are a 20% taxpayer that is what the company car costs you in terms of tax.

thechippy

Many thanks for your help as usual.

So, just to clarify....

In real terms, it costs me £748 per year / 12 = £62.33 per month.
Basically, I "take home" £62.33 per month less than I would if I did not have a company car?

If that's the case, it's a bargain imo........:D.....:beer:

BoGoF

Assuming you've input the car details correctly and you are a 20% taxpayer then yes.

thechippy

BoGoF wrote: »

Assuming you've input the car details correctly and you are a 20% taxpayer then yes.

Many thanks for your time.....:beer:

Mikeyorks

thechippy wrote: »

If that's the case, it's a bargain imo........:D.....:beer:

Precisely so.

So now, as me, you can't understand why everyone whinges about 'benefits in kind'? From company cars to medical insurance they're a real bargain if someone else is footing the bill - and you're only paying the tax on it.

thechippy

Mikeyorks wrote: »

Precisely so.

So now, as me, you can't understand why everyone whinges about 'benefits in kind'? From company cars to medical insurance they're a real bargain if someone else is footing the bill - and you're only paying the tax on it.

Exactly.

I made a point of choosing a car with very low co2 and capable of 65mpg.

How could you possibly buy and run a 23k car for £63 per month?

caeler

thechippy wrote: »

Exactly.

I made a point of choosing a car with very low co2 and capable of 65mpg.

How could you possibly buy and run a 23k car for £63 per month?

Thats exactly what I've done, got the new Audi A3 99co2 and it really is doing 65mpg! Also BIK rates are going up over the next few years so I hope with 99co2 I've got half a chance of keeping the percentage as low as possible.