Company car take home pay

LadyRosetta

Hello

I’m looking to work out what I will take home per month with a company car.

I currently take a cash for car allowance, which works out as follows:

£44,000 salary with pension
£525 per month cash for car allowance

Net salary £2993.10

If I was to take a company car instead of the allowance with the following details, how much would I take home per month?

P11D Y1: £27,165
CO2: 109g/km
Apparent additional tax arising from use of this vehicle: £196.26

Many thanks in advance

jimjames

£196 per month extra tax? So deduct £196 off your current take home so approx £2800 but you won't have the £550 so need to take that off after adjusting for tax assuming that is on top of the £44k salary.

As a rough reckoner you'd lose £330 from the car allowance after tax so approx £2470. Probably best to run the numbers through to see how it works out as things like pension also affect it as you'll be in higher rate band

https://www.tax.service.gov.uk/estimate-paye-take-home-pay/your-pay

unholyangel

HMRC have a online calculator for car & fuel benefit you can use.

Calculator gives a figure of £2715 a year - assuming the 27150 you quoted is the list price inclusive of extras and you're not paying any capital/ongoing contributions.

DoaM

Try the Comcar website ... that might give a reasonable guide on expected outlay/net salary.

MEM62

Is your employer paying for fuel also? if so that will need to be taken into consideration. Bear in mind that these figures take you into the 40% tax band.

I have just given up my company car as the tax burden is just too onerous. The taxable value of my 1.6 Seat Leon this year would have been £12,515. The cost to me in tax and NI is £438 per month. I can run my own car for less.

DoaM

I have an Insignia Grand Sport 1.6L 136PS Tech Line Nav as a company car. The BIK on my payslip is £503, or £6,036 per year. (This is car only, no private fuel benefit). As a 40% tax band payer that means I'm paying about £201 per month.

(Comcar suggests it should be a little higher ... I also pay £50 per month "trade up" towards the vehicle ... the tax offset on this probably account for the difference).

unholyangel

MEM62 wrote: »

Is your employer paying for fuel also? if so that will need to be taken into consideration. Bear in mind that these figures take you into the 40% tax band.

I have just given up my company car as the tax burden is just too onerous. The taxable value of my 1.6 Seat Leon this year would have been £12,515. The cost to me in tax and NI is £438 per month. I can run my own car for less.

Are you sure you have the figures right there? Even 50k+ cars (which the leon is nowhere near) wouldn't cost that. Unless thats fuel benefit also.

MEM62

unholyangel wrote: »

Are you sure you have the figures right there? Even 50k+ cars (which the leon is nowhere near) wouldn't cost that. Unless thats fuel benefit also.

Yep, includes fuel benefit. I was paying (Based on a BIK value of £6508) 227 per month tax on the fuel 'benefit' alone. The monthly spend on fuel for both private and business use only averaged £180 per month.

I understand that the Government wants to encourage company car drivers into cars that produce less pollution but, in my case, it has had the opposite effect. I have been taxed out of a new, more emissions-efficient car into an older vehicle with higher emissions. I'm not complaining though. I have more money in my pocket and am very much enjoying my 320i :-)

DoaM

Apart from Bluetooth audio of course.

MEM62

DoaM wrote: »

Apart from Bluetooth audio of course.

Yes, apart from the Bluetooth audio :rotfl:

unholyangel

MEM62 wrote: »

Yep, includes fuel benefit. I was paying (Based on a BIK value of £6508) 227 per month tax on the fuel 'benefit' alone. The monthly spend on fuel for both private and business use only averaged £180 per month.

I understand that the Government wants to encourage company car drivers into cars that produce less pollution but, in my case, it has had the opposite effect. I have been taxed out of a new, more emissions-efficient car into an older vehicle with higher emissions. I'm not complaining though. I have more money in my pocket and am very much enjoying my 320i :-)

No option to reject the fuel benefit?

I do agree the government are going about it all the wrong way though. They shouldn't have ved based on emissions alone. You could have a less "eco friendly" car that only does 2k miles a year yet get hit with higher charges. Yet you have someone in one of the "cleaner" models doing 30k miles a year and they might have little or no ved to pay. Likewise with fuel and car/van benefit. Doesn't matter whether you do 500 or 50000 miles a year.