company car or PCP?

pink_muppet

I currently have a company car and a fuel card that pays for my business and private mileage, however I have to submit my private mileage each month and through my expenses and am charged for all private miles

My total annual mileage is approx 30,000 miles, I would say 14,000 of that is private miles

I'm not sure what I pay extra in company car tax as my tax code seems to change on a monthly basis, I have an Audi A3 1.9 TDI

Next May I have the option when my car goes back of taking a PCP instead, this would be a monthly payment of £550 gross, I would not have a fuel card anymore but would be reimbursed business miles of I think it is 40p per mile for the first 10,000 miles and then 25p after that (is this right?), if I took this option I wouldn't be paying as much income tax is this right? I wouldn't have to choose a brand new car and perhaps would get something a year old instead

So, can anyone tell me which way I am going to be better off?

I

PhilL_3

http://www.cashorcar.co.uk/ should help you decide either way.

pink_muppet

hmm tried that but didn't help!

PhilL_3

Hmm a few more details are needed; like what car are you likely to be offered by your company? Do your company have any limitations on what car you drive if you opt out (age, 5 doors etc)? How long will you have your company car for? Are you in 22/40% tax bracket?

MORPH3US

Is it not just a case of sit down and put the figures into a spreadsheet??? I can't see why you need our help? (unless you're wanting us to do all the work for you?)

Sully316

Looking at it straight away, you are better off staying as you are.

Im not spending ages going into this as theres too many variables, but at the moment the Audi A3 1.9TDi is costing you :
List Price : £18,745 x 18% (Co2 emissions) = £3374 benefit in kind. So you pay actual income tax on this of £674.80/year = £56.23/month. It costs you £56.23 in tax to have this car.

Personal Mileage - 11p / mile reimbursement to your employer for private mileage = 14,000 private miles @ £0.11 = £1,540 = £128.33/month that you repay to your employer.

So in effect it is costing you currently : £56.23 in tax & £128.33 in mileage re-imbursements = £184.53/month the A3 is costing you.

On a PCP ?? - Personal Contract Plan ?? Anyhow, does this £550 gross include Insurance on the vehicle also ? Ok, so its costing you £550 less anything you can claim back as business miles - (10,000 @ 0.40 = £4000, 6,000 @ 0.25 = £1500) so £5500 you can reclaim back. £550 x 12 = £6,600 less £5,500 = £1,100 for cost of vehicle. Then you need to take into account that you have to put your own private fuel in now, and there maybe your own insurance to pay for, which is gonna cost you another £2k roughly. So the total cost to you is £1100 + £2000 = £3100 = £258.33 mth.

Hence, stay as you are.