Company car tax

GForce2010

Hi.

I've just been TUPE'd over to a different firm.

I've had a company car for years but I was able to get it tax free as I didn't use it for personal.

The new firm won't let me do that so once I get a new car I will be getting taxed on it.

I've done plenty of research so I know how to work out the BIK value. What I am having trouble finding is what effect this has on my actual take home pay.

If the BIK is £150 does that mean my take home goes down £150 or does that come off before tax is calculated meaning the take home goes down a smaller amount.?

Thanks.

TadleyBaggie

You only pay tax on the BIK, so it depends on what your marginal tax rate is. So the extra tax will be £30 (basic rate) or £60 (higher rate).

GForce2010

Hi.

Sorry, should have made myself more clear,

The BIK value is £8811 giving me a figure of approx. £140 a month at basic rate.

What the fleet manager couldn't tell me was does that just come off my pay of are there other factors that change how much I lose?

Thanks.

TadleyBaggie

If the BIK is £8811, then HMRC should reduce your tax code by 881. This means you will pay tax at your marginal rate on an extra £8810. So if you are a 20% tax payer this will be £146.85 per month.

MEM62

If you do not require a car for personal use then why not use a pool car?

Tiddlywinks

MEM62 wrote: »

If you do not require a car for personal use then why not use a pool car?

Most companies don't have pool cars.

Dazed_and_confused

Most companies don't let someone have a company car and agree there is no taxable benefit because it is so hard to prove that the vehicle isn't available for private use.

MEM62

Tiddlywinks wrote: »

Most companies don't have pool cars.

Dazed_and_confused wrote: »

Most companies don't let someone have a company car and agree there is no taxable benefit because it is so hard to prove that the vehicle isn't available for private use.

If you do not take your car home then it is easy to establish that it is not available for private use. The employer can lease or provide the car as normal but it is not taken home. It is therefore effectively a pool car that is used for business purposes only.

Wayne_O_Mac

MEM62 wrote: »

If you do not take your car home then it is easy to establish that it is not available for private use. The employer can lease or provide the car as normal but it is not taken home. It is therefore effectively a pool car that is used for business purposes only.

Literally every part of this post is wrong.

gingerdad

Wayne_O_Mac wrote: »

Literally every part of this post is wrong.

have so say i don't agree - its looks correct, it also would need to be available to more than one person.

as soon as it goes home at least part of the time it becomes very dodgy to prove its not beind used for private use or commuting - only way possible to prove is having a tracker fitted.

Pool cars are more and more difficult to prove unless its left at the premsis and has a full driver log for every driver/use


as far as the BIK goes sounds like its going to cost you £140 a month. and you'll need to claim your fuel back, if they give you a fuel card it'll be more.

Dazed_and_confused

Whether you use the car or not is immaterial, the test for a company car is whether it is available for use.