small Ltd company - 1x 'company car' for 1 employee
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doningtonphil
Posts: 443 Forumite
Hello
I work for a small limited company. I am the only employee that is provided with a 'company car' as part of my overall package.
However, it was written off last week. The insurers settled with the lease company so nothing for the company to pay.
So a new car is being sought, and quick. However we have been tempted for the next car (which was due in April) to carry out an exercise to see what the different alternatives are and how that affects what the company pays and what I pay as an employee).
Today I looked at a brand new Nissan X-Trail (I had a Qashqai before). Its list price/P11D is £35030 and the total rental is 35x £437.27 p/m (inc maintenance and VAT) with 6 months up front (£2623)
What other raw data would be needed to compare what the cost to the company and to me are for the various options?
How would the company providing me with enough take home pay to afford the card compare to the company providing me the car and then reclaiming VAT but me getting walloped for BIK (I would consider a used car but there is no benefit to me when it comes to BIK as it is always based on new list price.
Can anyone interpret the above ramblings and let me know how to go about figuring out if I am better off just getting the salary and then buying the car myself?
I hope you can help
Phil
I work for a small limited company. I am the only employee that is provided with a 'company car' as part of my overall package.
However, it was written off last week. The insurers settled with the lease company so nothing for the company to pay.
So a new car is being sought, and quick. However we have been tempted for the next car (which was due in April) to carry out an exercise to see what the different alternatives are and how that affects what the company pays and what I pay as an employee).
Today I looked at a brand new Nissan X-Trail (I had a Qashqai before). Its list price/P11D is £35030 and the total rental is 35x £437.27 p/m (inc maintenance and VAT) with 6 months up front (£2623)
What other raw data would be needed to compare what the cost to the company and to me are for the various options?
How would the company providing me with enough take home pay to afford the card compare to the company providing me the car and then reclaiming VAT but me getting walloped for BIK (I would consider a used car but there is no benefit to me when it comes to BIK as it is always based on new list price.
Can anyone interpret the above ramblings and let me know how to go about figuring out if I am better off just getting the salary and then buying the car myself?
I hope you can help
Phil
0
Comments
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A huge question. Far more information needed. For a start we need it's fuel type and CO2 emissions. Also need to know the costs, i.e. road tax, insurance, likely repairs, likely total fuel costs. Your total annual mileage broken down between business and personal. What's the final lease payment to buy the car outright. What would be it's value at the end of the lease.
One point though, the company can't claim back the VAT on the car cost if bought outright. If it's leased, the company can only claim back half the VAT on the lease payments.
It's notoriously difficult to do comparisons of company car versus personal ownership, so don't expect any quick or easy answers.0 -
Probably best for the company to consult its accountants on such a question, too ...Signature removed for peace of mind0
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