Compnay Car - Affect on tax?

tabagobrent

Starting a new job at the end of the month that provides a company car as part of the package. I've never had one before and am unsure of the effect of it on PAYE tax.

Can anyone give me an idea of the rough cost to someone on 18k PA? Not sure what the car will be yet, prob something like a Focus.

Thanks.

mattymoo

You will pay 22% tax on a percentage of the cars list price including extras.
The percentage is derived from the CO2 emissions and runs from around 12% upwards.

Best bet is to go to the HM Revenue website, look for info for employees and use the company car tax calculator there.

Note, you also pay tax if the employer gives you free fuel.

Alfrescodave

Company cars are "generally" not the perk they were once considered to be. Be prepared for a big drop in tax code (increase in tax) when the tax people get to know. Many of my colleagues are seriously considering opting out of the company car scheme. Best advice I can give is try it and see

divadee

most people i know have opted out of the company car scheme they take the extra tax payment and pay for there own car. my best friend gets around £290 a month payment to pay for her own car.