Car Allowance (I'm 22!)

JQ.

If you want to work out the tax costs of the company cars go here :

http://comcar.co.uk/newcar/companycar/taxcalc/g1select.cfm

and input the cars you need to compare.

Cardozo

[FONT=&quot]

JQ. wrote: »

If you want to work out the tax costs of the company cars go here :

http://comcar.co.uk/newcar/companycar/taxcalc/g1select.cfm

and input the cars you need to compare.

I've used that, but I don't quite understand the results, sorry.

[/FONT][FONT=&quot]VW Golf BlueMotion 1.6TDI (£864 personal contribution) = 15447.44 on payslips.[/FONT][FONT="]
Total additonal tax arising from use of the vehicle:[/FONT]
[FONT="]per year: £346.16 | per month: £28.85[/FONT]
[FONT="]Employee's NIC -1427.40[/FONT][FONT="]
Total on payslips 15447.44[/FONT]
Totals on P11D 1730.80

[FONT="]
[/FONT]
[FONT="]VW Polo Match 1.2TDI (£0 personal contribution) = £15388.16 [/FONT]
[FONT="]Total additional tax arising from use of the vehicle:[/FONT]
[FONT="]per year: £405.44 | per month: £33.79[/FONT]
[FONT="]
Employee's NIC -1427.40
[/FONT][FONT="]Total on payslips 15388.16[/FONT]
[FONT="]Totals on P11D 2027.20 [/FONT]

[FONT=&quot]I've tried to do the leg work, can you advise? Also, does my 16.5p fuel allowance need to be factored in?
[/FONT]

closed

if you had no car (and no allowance for car), you'd take home approx £15,792.04 pa, £1,316.00 per month this tax year, so compare that with the figures you've quoted (ie take off 405 tax to arrive at 15388 more or less)

Cardozo

The cost of a company car is approx the same as a PCP/HP move then but it's a lot more secure and safe financially. Ok. That's good!

How about the 16.5pence? Does that have any additional tax implications?

closed

Don't think it applies as they are not paying for private use, but someone else may be able to confirm.

http://cccfcalculator.hmrc.gov.uk/CCF0.aspx

arcon5

If you will be with them for a few years I think you should take the allowance, buy a car for about £2-3k and run that. This way at the end of it you own the car, have incurred NCBs and should still have made a fair profit..

londonTiger

I have a friend who decided to take the full allowance and use public transport. He worked for cisco systems. Not sure if that is an option to you though.

Also, personally I would just buy my own car for 2 grand and ask for the full allowance for fuel. I'm not sure if they will allow you to do something like this. But its worth asking. Company cars are OK, but you always get the feeling that its not your car. So you never buy customisations/stero and do work on the car because you know you're just going to hand over the keys after a few years.

if you can do with a 2 grand car and get the full allowance for your petrol you could be better off.

londonTiger

arcon5 wrote: »

If you will be with them for a few years I think you should take the allowance, buy a car for about £2-3k and run that. This way at the end of it you own the car, have incurred NCBs and should still have made a fair profit..

sorry didnt read that before replying.

As a young lad, your car is going to be your pride and joy, you're probably going to want to do modifications on it/ But aftermarket allows, colour match the trim and other stuff. You cant do that with a company car.

Cardozo

Personally, I've never seen the attraction of modding cars etc. I like the idea of having a decent one though and therefore a new or near new car is attractive.

I think the company car will do for now and in a few years (when my allowance is more) I can look to take it. I need a relatively new vehicle with 5seats etc so public transport isn't an option.

londonTiger

Cardozo wrote: »

Personally, I've never seen the attraction of modding cars etc. I like the idea of having a decent one though and therefore a new or near new car is attractive.

I think the company car will do for now and in a few years (when my allowance is more) I can look to take it. I need a relatively new vehicle with 5seats etc so public transport isn't an option.

well. I think you answered your own question. just a note, I would not get into any tie in on a company car. Just go with the polo. You'll have a obligation hanging over your head to stay with the company. Although it doesn't feel like you'd want to leave them and the jobs safe. It's better to have the freedom to walk away if you have to. If its just a utility vehicle for you with 5 seats I'd get the polo.