Company car tax

JackPez

Hi,

i was hoping someone with some knowledge on this subject could offer some advice. i'm slightly confused by the company car tax calculator.

I was under the impression its p11d x co2% x tax bracket either 20 or 40%. If this is the case, for example a BMW 3 series would be as follows:

p11d - £36,700 x 27% = BIK of £9,909 x 40% = £3,963 x 12 = £330 per month.

However if i use the comcar.co.uk calculator is gives me the exact same figures but a monthly cost of £255?

BoGoF

What is your salary?

Dazed_and_confused

Those sort of calculators only tell you so much.

Do they cover Scottish resident taxpayers who would pay 19, 20, 21, 41 or 45%?

But in any case you don't necesaarily pay either 20% or 40%. The benefit is added to your other taxable income and tax calculated on the total. So you could pay some 20% and some 40%.

All depends on your other taxable income, which should be on your payslip and P60.

JackPez

My salary is 42k. So if the BIK on the car is 9K combined its 51k which takes me into 40%. I thought that meant i paid a full 40% on the car however the comcar calculation seems to differ

00ec25

JackPez wrote: »

My salary is 42k. So if the BIK on the car is 9K combined its 51k which takes me into 40%. I thought that meant i paid a full 40% on the car however the comcar calculation seems to differ

people "always" forget to deduct the personal allowance

42,000 - 11,850 = 30,150
basic rate is up to 34,500

nearly half of the 9k BIK is being taxed at basic rate and potentially even more of it depending on your pension arrangements