Company Car Tax - Confused!

unholyangel · 18 July 2019 at 10:07AM

Burkey89 wrote: »

I'll look into it more as I can only see a way that getting a car or using mine is going to cost me to do the role

How is it going to cost you? Or do you think that the extra wear & tear on your own car caused by business miles would be more than £102 per month (assuming NI @ 12% and tax at 20%)?

Likewise even with a personal use charge & tax on a company car, they would most likely be less than the £200 per month you're paying for your private vehicle now.

Bigphil1474 · 18 July 2019 at 12:28PM

Burkey, I get £83 a month lump sum, and 40.1p per mile that I claim from my employer every month. I provide my own car. Suits me but I have a 10 year old Fiesta which I bought outright.
Whether you pay any tax is dependant on the lump sum and the ppm combined, divided by the miles. If you end up doing 10,000 miles and get a total of £4,500 a year, no tax. Get more and pay tax. (Simplified) If you are concerned about depreciation etc. then factor that in, but for me, as I have already bought the car, I don't worry about it. On the miles I do, I make enough to cover my business and personal mileage as well as the normal costs of motoring - insurance, MOT etc.

Burkey89 · 19 July 2019 at 6:46AM

So as it stands my wife has the car on pcp which we pay for and I used to have a work van, since my promotion they give you a company car, but as I have found out for the sake of using it to go around the jobs instead of my van it is going to cost me to buy and run another car as what they give wouldn't do that. I dont need it for personal use just need it to get to work and then to jobs and meetings.

unholyangel · 19 July 2019 at 7:30AM

Burkey89 wrote: »

So as it stands my wife has the car on pcp which we pay for and I used to have a work van, since my promotion they give you a company car, but as I have found out for the sake of using it to go around the jobs instead of my van it is going to cost me to buy and run another car as what they give wouldn't do that. I dont need it for personal use just need it to get to work and then to jobs and meetings.

Commuting to your workplace is personal use, not business use.

Car_54 · 19 July 2019 at 7:34AM

Bigphil1474 wrote: »

Burkey, I get £83 a month lump sum, and 40.1p per mile that I claim from my employer every month. I provide my own car. Suits me but I have a 10 year old Fiesta which I bought outright.
Whether you pay any tax is dependant on the lump sum and the ppm combined, divided by the miles. If you end up doing 10,000 miles and get a total of £4,500 a year, no tax. Get more and pay tax. (Simplified) If you are concerned about depreciation etc. then factor that in, but for me, as I have already bought the car, I don't worry about it. On the miles I do, I make enough to cover my business and personal mileage as well as the normal costs of motoring - insurance, MOT etc.

AFAIK any car allowance is simply treated as additional salary, so your £83 a month is taxable. It's entirely separate from any mileage payments. Where does your £4,500 allowance arise?

Company Car Tax - Confused!

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