company car

Clive_Woody

Not quite the same situation but I take the cash and I got a car when Skoda were doing a 0% finance deal over 3 years. My post-tax car allowance more than covered the car payments then after 3 years the car was mine and now the car allowance goes into savings. I don't do a lot miles as I work from home mostly so my car, despite being over 6 years old, is in very good condition and sites in the garage a lot of the time.

spiro

When doing your sums bear in mind that because the company is only paying 25p/mile she can claim the tax back on the 1st 10k miles between the HMRC rate (45p) and the company rate (25p).

jiggy2

The point which has been mentioned once above but seems to have been overlooked is the current HMRC consultation on salary sacrifice and company cars. It may be a good ideato wait till 23 November to see what gets announced.

keepaneyeonus

Hi there. looking for some advice pleae. I currently have a 2016 Ford Focus Estate 1.6 D Zetec (Value £20,290) as a company car. I do about 10,000 personal and business miles per year and get about 11p per mile through expenses. My P11D form says the cash equivalent is £3855 whatever that means.


I now have the option to take a £5,500 car allowance. I am a 40% tax payer. Does that mean I have £5,500 divided by 12 months = £458 per month total to spend? If so, we have a leasing partner and I can get a Land Rover Discovery Sport HSE with everything included, BIK, insurance etc. for £525 per month, so do I just have to make up the difference or is the £458 monthly allowance incorrect?


Also, what are the options for going with a lease company othet than the one my company partners with. They don't include all of the BIK and insurance so how is that worked out on the persoanl or business options.


Thanks.

bigadaj

You have 60% of the £458 per month to spend as you are taxed in the car allowance. To balance this out slightly you can claim the difference between your company mileage rate and the Hmrc allowance back thorough your tax return and get tax relief on that.

What mileage is the disco quote based on?

If you are leasing a car yourself there is no bik, you are personally leasing the car and liable for it and it's maintenance. Maintenance may or may not be included in the deal, it's an option depending on who you lease the car from and what you want.

spiro

You pay tax on the £3855 cash equivalent, if you take the money instead you will pay yax on the £5500. So include this in your sums.Also how much of the 10k miles are business?