Company Car Basics Help Please

andyydna

Hi all,

I am starting a new role at work in July where I will have a company car.

Am I correct in thinking that unless I have an increase in my basic salary, I am effectively going to be worse off as I will have to pay tax on the car.

I understand the benefits of not having to pay car maintenance, insurance etc. but use my car very little at present so these outgoings are currently minimal.

Any help on the above would be greatly appreciated as I'm struggling to get my head around how it all works.

Thanks in advance
andyydna

Doozergirl

The car costs money itself so whilst you do pay tax, you're paying tax on a benefit - the use of a car.

I've managed to get mileage allowance with my new job at 40p per mile because my car is lovely and new and I don't want to downgrade at the cost of a year's depreciation! It depends on the mileage you're going to do though as to whether it works out for the company.

Or try for a little more basic salary if it really isn't a 'benefit' to you.

Crabman

Hey Andy, welcome to the forums

There's a company car tax calculator on HMRC's site and some other links you may find useful in deciding - click here.