Company Car Tax

Tuharax

I wondered if anyone could help me understand P11D and company benefits. I am currently looking at ordering a new company car I am using and some of the figures are worrying. On one car the sites says its 561 extra a month in tax. I am taking this as a straight 561 extra from my salary. However, based on my tax estimates for this year I think I am incorrect. It is an extra 561 in tax a month. However, it does not mean 561 extra a month from my wage because of personal allowance. In the case of this year I underpaid 3609 due to 300 a month for a car but it only worked out at 561 in total extra for next year.


I am looking at two car options for this year and have done some calculations I want to make sure I am correct.


Car 1 benefit and fuel 300 a month. 300*12 = 3600 underpaid tax this time next year. So 12,500(assuming no increase in allowance again) - 3600 = 8900 personal allowance. Salary (35k) - 8900 - 26k I will pay 20% on that 5220 tax for the year. 435 a month total in tax.



Same scenario but a better car = 600 a month. 600*12 =7200 underpaid. 12,500-7200=5300. 35k -5300 = 29700. 20% - 5940. = 495 tax a month.


Therefore although the 600 for car two seems a lot more than 300 when it all works out its only an extra (495-435) = 60 a month difference in tax?