Company car - tax liability

Pat_Man

Hi all,
I've been offered a great job as a field service engineer, the role is home based and I will travel a lot. HR have told me that there is no cash allowance for a car as the company car is a requirement. My salary will be £39.5K.
Looking on HMRC website it seems that I could get hammered for a lot of tax depending on the type of car, fuel etc...
I've also seent that there is no tax liability if you don't use it for personal use, but, it seems to say that I would have to prove that I haven't. Does anyone have a quick rundown of the ins and outs of the company car tax system? I don't know yet what price the car will be (waiting for all the paperwork to come through) but I'm imagining the list price will be approx £25K to £35K.
Thanks in advance!

Darksparkle

You don't get hammered with tax. The car benefit is taxed at the appropriate rate for your circumstances. Once you know the figures you can use the HMRC calculator to see how much the benefit is worth and from there work out how much tax you would pay. You also pay no NI on car benefit (but would on a car allowance)

To avoid the company car tax charge there must be an express, legally enforceable ban on private use, and
you must be able to demonstrate that there was no private use.

If the car is available for you to use privately and you choose not to then the car benefit still applies.

Your commute to work is private travel so if you take the car home then you'd have the car benefit.

redmalc

Pat man

It's more important you have the chance to select yourself a low emission car like a BMW 3 series