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Calculating bottom line for Car Allowance
Barebear
Posts: 118 Forumite
If I am on £40k wage and I get a car allowance of £5k, and the car allowance is subject to PAYE & NI, would I effectively be taxed at the 40% rate and therefore only have £3k to actually pay for a car?
It sounds obvious, but just as a sanity check, can anybody confirm?
It sounds obvious, but just as a sanity check, can anybody confirm?
0
Comments
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Use a pay calculator, once with 40k and once with 45k, the difference between the two is the amount extra you will get in take home.
So, using todays rates its about £3,150 extra takehome over the year assuming standard tax code, no student loans etc etc0 -
That worked well through Listen to Taxman. Thanks for the tip...
Cheers
BB0
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