Car Allowance vs Company Car

Matthew25_uk

First off sorry for the thread this has probably been answered thousands of times and by searching old threads its certainly a popular topic but it appears as though the answer is different to personal circumstances.

Okay car allowance or company car?

I can either have a car allowance of £4,000 or company car to value of approx £17,000.

I do approx 9,000 personal mileage and 1,000 business mileage per year.

I could claim 0.25p business mileage is opting for the allowance.

I am thinking of opting for the allowance?? What are your thoughts please?

Look forward to your replies.

Matt

p.s. If i was to opt for the allowance and claim the 0.25p back for business mileage, could i also claim the tax relief back from HMRC for the 0.15p difference to 40p per mile up to 10,000 - would it be worth doing this as i do little business mileage anyway.

hillbilly5

Why not look at company cars on www.comcar.co.uk.
My husbands company car is due for renewal in April and this past year have been really stung as he has a Ford Focus diesel estate which as it is 2l is heavy on co2 emissions.

By looking on comcar we have found a newford focus which he will only pay 13% tax on (if is was the petrol option would only be 10%). Along with the tax he would pay for the fact that he is provided fuel for private use, he would pay only £75 per month for both the car and fuel provided.

Do a search and look for cars that have a co2 rating of under 120kg.

Let us know how you get on.

Engadine

I have used both schemes in the past, I prefer the car allowance and claiming my business mileage. I do a lot more than 1,000 business miles per year, the company I am with now pay the full 40p per mile which is great, last place I worked only paid 16p per mile.

When I got a company car, we took what we were given didn't get a choice, I hated the car I had.

You can claim the tax relief on the 15p difference, won't work out at a lot you are owed but every penny in your pocket is better than in the tax man's!

nearlyrich

If you drive a company car you can't claim the difference between 40p and whatever the company offer as running costs....I have asked the question recently. I have a CC because I like the peace of mind of knowing tyres, windscreens, services etc are covered and if the car breaks down someone will fix it. I got a nice shiny new car a week ago it costs me a set amount in tax per month and I do a lot of miles every week. Different systems work for different circumstances and one size does not fit all.

Zeitgeist

nearlyrich wrote: »

If you drive a company car you can't claim the difference between 40p and whatever the company offer as running costs....I have asked the question recently.

You can claim the difference from the Inland Revenue, yes. The company treats you as having a company car as it pays you a car allowance, but the Inland Revenue treats you as having your own car which you use for business purposes since the car allowance you get is simply salary and taxed as such.

nearlyrich

Zeitgeist if you have a company car you can't claim any extra from the tax man, if you have a car allowance you can, trust me I checked a couple of weeks ago.