Company Car or Allowance?

newby2013

Okay, this is my first post so bare with me..

I am due to start a new job in Feb 2013, the basic salary is £38,500 with a £5,700 car allowance, or company car, which I can select from a list.

My question is which will I be better off with? I am getting really confused with the higher rate tax on company cars - If I take the car I will still be at the higher tax rate so does this mean my monthly tax on the car doubles?

for example an audi a4 i have my eye in £82 for 20% tax payers and £164 for 40% tax payers. Do i automatically have to pay double even though i am only just in the higher bracket (38,500)?

or should i just take the full salary of £44,200 (incl car allowance) and buy/run my own car? would this be better from a tax perspective?

I am finding all this very confusing to work out exactly what my take home pay will be. Can anyone help??

Thanks

Horseunderwater

You might be better putting this one on the tax cutting forum on this site. People on there will know much more.