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Company car benefit

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24

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  • Rich6859
    Rich6859 Posts: 25 Forumite
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    She is taxed £8000 for fuel which includes private and business miles for info 
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    Surely cheaper to pay back the personal mileage?
  • Rich6859
    Rich6859 Posts: 25 Forumite
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    Thanks. Will look at that. 
  • AdrianC
    AdrianC Posts: 42,189 Forumite
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    bigadaj said:
    Surely cheaper to pay back the personal mileage?
    Yup, that's one HECK of a lot of private miles...

    At 40% tax, £1.20/litre and 40mpg, it'd be north of 23.5k private/commuting miles/year to break even.
  • Scrapit
    Scrapit Posts: 2,304 Forumite
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    £550 is a very decent car allowance. What car do the company currently supply?
  • Rich6859
    Rich6859 Posts: 25 Forumite
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    Currently a seat Alhambra, which is a £12000 benefit in kind , just struggling to see how that equates to £550 a month come when we have to finance her own car 
  • Car_54
    Car_54 Posts: 8,317 Forumite
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    Rich6859 said:
    Currently a seat Alhambra, which is a £12000 benefit in kind , just struggling to see how that equates to £550 a month come when we have to finance her own car 
    Butt it doesn't. As explained above, she has about £700 to play with.

  • Scrapit
    Scrapit Posts: 2,304 Forumite
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    Rich6859 said:
    Currently a seat Alhambra, which is a £12000 benefit in kind , just struggling to see how that equates to £550 a month come when we have to finance her own car 
    Price up a lease or hp and you'll be able to replace that easily.
  • facade
    facade Posts: 7,091 Forumite
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    edited 8 June 2020 at 9:00PM
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    Car_54 said:
    But it doesn't. As explained above, she has about £700 to play with.
    And don't have the private use fuel either- the tax is about £266 pcm, which will buy 55 gallons of fuel, unless she does more than 1,800 private miles a month (including commuting) she is losing out over just buying her own.

    Does that mean she is currently paying 40% of £18k tax (£7200 pa = £600 pcm) for a company car with fuel included?  :o
    I want to go back to The Olden Days, when every single thing that I can think of was better.....

    (except air quality and Medical Science ;))
  • Jack_Cork
    Jack_Cork Posts: 231 Forumite
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    facade said:
    Car_54 said:
    But it doesn't. As explained above, she has about £700 to play with.
    And don't have the private use fuel either- the tax is about £266 pcm, which will buy 55 gallons of fuel, unless she does more than 1,800 private miles a month (including commuting) she is losing out over just buying her own.

    Does that mean she is currently paying 40% of £18k tax (£7200 pa = £600 pcm) for a company car with fuel included?  :o
    Probably. I Pay about £370 a month for mine without free fuel, which would double if you had fuel included
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