Aargh Company Car Tax

hobo28

Hi all

I'm trying to work out how much a company car will actually cost me each month. I'm rubbish with tax etc. so hope someone here can help. At the moment I take the cash allowance.

Basically the car I have my eye on is on the fleet list at £330 per month. So by my reckoning it would really cost me only £198 each month net (60% of £330). But of course I also have benefit in kind tax to pay which apparently according to the Whatcar website is £1403 per year (or £116 per month)

So the question is, am I right in assuming that the "true" cost to me each month is £198 + £116 = £314?

So if I earned £2500 a month net then I'd take home now £2500-£314? Am I right or completely barking up the wrong tree?

Thanks all for helping.

Crabman

Check out the below sites for info which may help with calculating tax liability as you know what car you'd like (I'll add these to the Motoring Websites thread in due course)

http://www.cartax.co.uk/
http://www.hmrc.gov.uk/cars/employee-guidance.htm
http://www.theaa.com/allaboutcars/companycartax/index.jsp
http://www.whatcar.com/company-car-tax.aspx
http://www.parkers.co.uk/cars/company-cars/