Help: Car allowance

KC1984

Hi,

I'm trying to work out how much I can afford per month when looking at purchasing a car.

My basic is £30k and now been given a £4k car allowance. Ideally I want to make as little contribution from my salary and simply maximize my allowance.

Thank you

Darksparkle

After tax/NIC, you'd have £226 car allowance per month.

(Assuming that is the only income you have).

booksurr

do you mean you can spend up to 4k on a company owned car
or
do you mean the company will pay you an extra 4k per year as a contribution towards you purchasing a car you will own yourself?

if the former you will be taxed on a CO2 band of the vehicle and its list price
I rather think you mean the latter , in which case the 4k is simply treated as extra salary so you will be taxed on a gross income of 34k per year

Hint: step 1. £4,000 x 20% = n
Step 2. (4000 - n) /12 = extra net pay per month

KC1984

Thank you.

Booksurr- you are correct, the company are giving me an extra £4k towars purchasing my car, they also giving me a fuel card which I can use for both for personal as well as business miles.

I imagine i'll be driving 15k for business and 5k personal.

So far i'm considering going down the PCP route, but have struggled to work out what kind of car I can aim for (after tax per month)

Darksparkle

booksurr wrote: »

do you mean you can spend up to 4k on a company owned car
or
do you mean the company will pay you an extra 4k per year as a contribution towards you purchasing a car you will own yourself?

if the former you will be taxed on a CO2 band of the vehicle and its list price
I rather think you mean the latter , in which case the 4k is simply treated as extra salary so you will be taxed on a gross income of 34k per year

Hint: step 1. £4,000 x 20% = n
Step 2. (4000 - n) /12 = extra net pay per month

Plus the NIC of 12%.

So £333 x 68% = £226