Company car versus personal car

MORPH3US

Hi all,

Wondering if someone can help me out. I am currently considering moving jobs and the new job involves a lot further trip to work, but comes with a company car. If I don't take the new job, i'll need a new car soon anyway so trying to work out the monetary differences:

If I buy a car by myself aprox £8k over 5 years:
Yearly loan repayments: £1860
Personal petrol costs for year: £1033
Maintenance (tax, insurance): £360
Total yearly cost: £3253 = £271 a month

Company car:
Loan repayments on purchase: £0
Tax paid on BIK: £483 (from 5th April, will be more before)
Personal petrol: £2652
Maintainance: £0
Total yearly cost: £3153 = £262 a month

Can anyone advise if the above is correct or have I missed something?

Obviously there are the benefits that can't be costed such as company car is likely to be a much better car C4 Coupe HDI VTR+ or Focus TDCI rather than a fiesta if I buy myself although obviously Fiesta would be fine for shorter journey to work and Focus / C4 would be required for longer journeys.

mrcow

MORPH3US wrote: »

Can anyone advise if the above is correct or have I missed something?

Yes you've missed out mileage.

If you use a private car for business, you can claim back your business milage against your tax allowance.

First 10000 miles at 40p per mile
The rest at 25p per mile

This is then set against your tax code and so you will claim either 40% or 22% of this back.

MORPH3US

Thanks MrCow,

I have excluded business mileage from all of the calculations above because whichever job I end up in, business mileage will be paid for (40p per mile for current job with own car) or fuel card for business miles with company car so they don't affect me!

mrcow

MORPH3US wrote: »

I have excluded business mileage from all of the calculations above because whichever job I end up in, business mileage will be paid for (40p per mile for current job with own car) or fuel card for business miles with company car so they don't affect me!

Okay, but by taking that out of the equation, are you not making the company car seem a better option compared to the private car, when in reality, if you do say 12000 business miles a year, it will skew the figures by thousands? IMO it's probably better to include everything in the calculations so you can see all your costs (at least that's what we do).

MORPH3US

Hi MrCow...

Thanks for the help but i'm not sure where you are coming from with this?

If I do work mileage in my own car I get 40p per mile, but in return, that mile costs me 40p per mile (give or take) in fuel, wear and tear, insurance etc.

So I do get extra money for it, but its not like its more income for me, its just compensating me for a cost incurred...

mrcow

MORPH3US wrote: »

If I do work mileage in my own car I get 40p per mile, but in return, that mile costs me 40p per mile (give or take) in fuel, wear and tear, insurance etc.

Fair enough. When we did our calulations on insurance/servicing/wear and tear etc, it didn't come out anything like that much, so it was a consideration to take into account.

gingerdad

Insurance for your own car? and why so much extra for the personal miles on your company car?

MORPH3US

Thanks gingerdad...

I have included insurance for my own car in "Maintainance".

Personal miles on company car are so much because the job with the company car is 50 miles each way as opposed to 20 miles each way for my current job!

M