New Company Car Rules

Shakeystevo17

Evening all

I've recently taken a new job role that has a car allowance. It is noted as £5500 per year. I am a higher rate tax payer.

In my previous job I had a company car where BIK came into play. Hence easy to calculate how much take home pay I'd loose etc.

I've not dealt with having a sum added to my salary each month. I'm trying to calculate how much I have per month to allocate to a car. I'm a bit baffled by the new rules that have came into play...

Is it now correct my tax is now based on BIK for car allowances too? I need to privately buy/lease my car so how will HMRC know what I am driving etc?

If anyone can advise or point me in the direct it would be great!

Thanks
Shakey.

xylophone

https://www.whatcar.com/news/company-car-cash-alternative/

may be worth a look.

Shakeystevo17

Hi and thanks for quick reply.

The article is back from 2016... I heard the new tax rules from April this year changed everything...

Appreciate the help.

Darksparkle

https://www.clm.co.uk/company-car-tax/

xylophone

http://www.fleetnews.co.uk/news/fleet-industry-news/2016/09/22/hmrc-takes-aim-at-thousands-more-company-car-drivers

But as far as I can see, in the situation where you are taking cash, there is actually no change?