Looking for advice on tax with a company lease car.

Pinkjacs

Hello, I am looking fir some advice, I am able to get a lease car via my work. Seem an excellent deal but unsure how to tell how my tax will change. I earn around 10k a year. Car I am looking at is a Clio Eco dynamic. I looked at the online tax calculator but did not understand it.

Thanks in advance.

Car_54

There are lots of calculators online. This one looks about as simple as you'll get.

All you need to know is the precise make and model, do you make a contribution, what tax rate you pay, and whether the employer pays for fuel for private use.

rich13348

The tax for the car is generally based on in your case 20% of an amount based on the list price of the car and the CO2 emissions.
If your company pays for your personal fuel then you will also pay 20% on an amount of based on an arbitrary amount and the CO2 emissions.
HMRC calculator is best but you need to know all the values including list price, CO2 emissions and if you will have personal use of the vehicle and personal fuel paid for by your company.
Or you can do it manually using this form.

bigadaj

Probably a bit over £30 a month.

It should be £50 a month but because your salary is low you still have unused personal allowance. This assumes you don't get fuel supplied by the comoany, fuel probably isn't worthwhile even if they offer it unless you do fairly high mileage.

Will they offer money instead, this may be worth more to you, and do you do any or much business mileage?

weeowens

Try this: http://comcar.co.uk/newcar/companycar/taxcalc/

agrinnall

Car_54 wrote: »

There are lots of calculators online. This one looks about as simple as you'll get.

Which one? I think you forgot a link.

weeowens

Or this from HMRC: http://cccfcalculator.hmrc.gov.uk/CCF0.aspx

weeowens

Pinkjacs wrote: »

Hello, I am looking fir some advice, I am able to get a lease car via my work. Seem an excellent deal but unsure how to tell how my tax will change. I earn around 10k a year. Car I am looking at is a Clio Eco dynamic. I looked at the online tax calculator but did not understand it.

Thanks in advance.

Are you paying anything towards the leasing costs or is it fully company funded ?

Pinkjacs

Thank you it's NHS lease car so my petrol allowance will be reduced, I won't get private use fuel paid for I will cover that myself. The car lease itself seems great (£65 a month) I do about 3500 business miles a year. So their contribution is 1540 a year. I do not put down anything on the car other than my monthly payment. All very complicated and the team who deal with it were not very helpful.

weeowens

I'm not sure how it will work as you are paying towards the car.
What happens re the NHS wages dept knowing about the car & what have they said re changing your tax code, if it is to be changed.

weeowens

Is it salary sacrifice as per: https://www.uhmb.nhs.uk/files/4214/1578/6147/Salary%20Sacrifice%20booklet%20UHMB%20new%202%20cars.pdf

http://www.swast.nhs.uk/Downloads/SWASFT%20Bulletin/Bulletin%20links/LeaseCarBooklet.pdf