Looking for advice on tax with a company lease car.

rich13348

Pinkjacs wrote: »

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.

Ok so the way to calculate is:
List price minus capital contributions or what you pay towards the car in a year e.g. 12*£65 lets call this C
Multiply C by the percentage relevant to your CO2 emissions. This is the amount you will be taxed on for your car.
As there is no personal fuel allowance you don't pay tax on fuel

As you have a low pay you will have some tax free allowance left over so some of your car will not be taxed.

This will force you into paying tax but only on some of the car.
Take the amount you calculated and subtract it from your current tax free allowance listed on your tax code notice.
Divide this amount by 12 and subtract it from your gross monthly salary then multiply by 20% or divide by 5 which ever is easier for you.

This is how much tax you pay on your car.

Pinkjacs

weeowens wrote: »

Is it salary sacrifice as per: L]

They are great links thank you. Yes it's salary sacrifice.

Pinkjacs

rich13348 wrote: »

Ok so the way to calculate is:
List price minus capital contributions or what you pay towards the car in a year e.g. 12*£65 lets call this C
Multiply C by the percentage relevant to your CO2 emissions. This is the amount you will be taxed on for your car.
As there is no personal fuel allowance you don't pay tax on fuel

As you have a low pay you will have some tax free allowance left over so some of your car will not be taxed.

This will force you into paying tax but only on some of the car.
Take the amount you calculated and subtract it from your current tax free allowance listed on your tax code notice.
Divide this amount by 12 and subtract it from your gross monthly salary then multiply by 20% or divide by 5 which ever is easier for you.

This is how much tax you pay on your car.

Thank you very much. Will get onto this.

Car_54

agrinnall wrote: »

Which one? I think you forgot a link.

Oops! Sorry.

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

weeowens

[quote=[Deleted User];70815837]Oops! Sorry.

http://comcar.co.uk/newcar/companycar/taxcalc/[/QUOTE]
I must be a mind reader: # 5

:-)

Rustypail

Hi,
The Comcar link above will show you how much tax you will pay on the car, and you can put your salary in to get calculations for future years. The calculator won't show how much tax you save on the element of pay that is sacrificed so it all gets complicated depending on how the scheme is operated. Choose a low CO2 car and it should work well. The company will presumably pay for the car insurance.
What is your hourly wage after the salary sacrifice?
Check this here to make sure it is above the minimum wage:
comcar.co.uk/pay/NMWcheck/

Pinkjacs

Thank you all for your replies. I now have quote in hand. According to comcar.co.uk I could be around £20 a month for tax so added to £65 for car it sounds like a plan.