Company car and Disel card

terriandaaron

Hi
Hubbys always had a car allowance (6.5k) per year,(which is used to cover payments, servicing insurance etc of his own car)
hes a higher rate tax payer and has been offered car and fuel instead of payment at his new job...would this make us better or worse off....what do you get taxed on company car.?

He currently drives around 50k a year and get some of his fuel costs rebated and the precentage he doesnt he gets a repayment from the tax man of around 1k a year also.

markdavey

The tax he will pay will depend on the P11D value of the car, the fuel used and the Band that the car falls in for its emissions.

Example:
Car P11D cost: £15000
Emissions: 120g/Diesel (put the car in the 18% Tax Bracket)
Taxable Benefit per annum: £2700
Monthly cost for higher rate taxpayer:£90

If the company is to provide fuel for private use, it is also based around the car's CO banding, following the above example:

Taxable Benefit for Fuel per annum: £3636 (18% of the Taxable Value of Benefit of £20,200)
Monthly cost for higher rate taxpayer: £121.20

Total monthly cost for Car and fuel based on above example: £211.20

** Bear in mind that this cost will come from the Base salary as you will loose any additional Car Allowance payment. If you are not spending all your allowance on the car, it is likely that you will feel far more out of pocket than the figures may suggest by taking the company car as you will be spending the extra on other things **

Or you could use the below calculator from HMRC. But in order to make a calculation and comparison you would need to know what car the co. are offering etc.

http://cccfcalculator.hmrc.gov.uk/

This site has a comparison calculator where you select the make/model of the car, enter your allowance details etc. and it spits out a figure for you to compare.