The actual cost of a company car?

Rowbo

AdrianC wrote: »

This is your CURRENT company car?

Did you not look at your P11D or a payslip?

Yes this is based on our current company car. My husband is changing companies so we are just trying to work out the cost to us of having a company car rather than the allowance. I realise the figures would be different for a different car.

The figures are not clear on the pay slip as they are grouped with other benefits. I will check the P11D.

Rowbo

molerat wrote: »

The figures all depend on if you are (already) a 40% tax payer. What is your annual salary (without the value of the car) ? DoaM's link above shows you exactly how much extra tax you will pay due to having the car and breaks it down into the various bands.

If your pay is £30K you will pay £204 extra tax monthly, £35K - £242, £40K - £325, £45K - £408.

So your quoted £408 indicates your salary, before the addition of the car, is above £45K.

Currently you are -£408 off your take home pay for having the car. The car allowance will give you + £350 so a take home of £758 per month more than you currently get. Plus there will be some additional payments / tax allowance for business fuel use.

The alternative may be having the car without the private fuel benefit for £220 per month and claiming back any business miles, is that a viable option ?

Thank you so much for breaking it down! I will certainly check about the option without fuel. It still seems like an expensive option to go for the company car.

Salary is within the 40% bracket without the car.

Rowbo

DoaM wrote: »

I don't know about other people but my payslip shows my BIK value ... the salary equivalent value of the benefit ... which is added to my actual salary. Tax is then at my marginal rate on the monthly total.

Example (not my real numbers):
BIK value = £450 (without fuel)
Marginal rate = 40%
Actual tax paid = £180

So in this example the car costs £180 per month.

Unless I'm misunderstanding how this all works?

That sounds like a good pay slip. Ours is very confusing. For something that should be so simple, I have no idea why I’m struggling to work it out!