Company car benefit

Rich6859

She is taxed £8000 for fuel which includes private and business miles for info 

bigadaj

Surely cheaper to pay back the personal mileage?

Rich6859

Thanks. Will look at that. 

AdrianC

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

£550 is a very decent car allowance. What car do the company currently supply?

Rich6859

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

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

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

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? 

Jack_Cork

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? 

Probably. I Pay about £370 a month for mine without free fuel, which would double if you had fuel included