Company Car v Car Allowance

1978SJR

Afternoon

1st of all sorry if this is in the wrong area :cool:

My work is now looking to create a company car scheme for the area I am in and I just scrape into the criteria for it. It looks like the offer will be either a company car (Value is approx. £4500 per year) or a car allowance of £3200 per annum. These are the figures that are being mentioned at present.

I am a bit confused about how this will work - Ie what it will cost me particulary around the company car option.

I get that the car allowance will be this figure with 40% tax taken off meaning that I will have £1920 per year to fund a car with (With insurance, fuel, etc on top of this).

What is the financial implimentations of the company car? The current car scheme that exists for my band is pretty much taken up by 3 series BMW's.

I would pretty much only do around 100 business miles per week and commuting too and from work and my personal mileage would be quite low.

Your advise on this would be great as I am lost

InsideInsurance

BIK that you pay on the company car all depends on the CO2 output and its list price. There are plenty of calculators that will tell you how much tax you'll have to pay on the company car.

Also remember that you'll get lower mileage rate on a company car assuming they dont give you a fuel card -v- a private car.

1978SJR

Thanks for that. Will do some online digging