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Car Allowance or Company Car
wee_den
Posts: 69 Forumite
in Cutting tax
am looking for advice please.
For the past two years I have been getting a monthly car allowance of £350 which takes my salary into the 40% tax bracket.
I now need to renew my own personal leased car.
My question is would it be better for me and my company if I took a company car?
Would both not save on the tax paid to HMRC? The car would only be used for personal use and I would not get fuel.
If it would be beneficial to both parties how can I prove this to my company?
And would this mean they would be responsible for the maintenance of the car, road tax etc... (not keen on them insuring it as do not want the hassle of proving further down the line my no-claims with a company car)
Hope this is clear and any advice received would be great
Denise
For the past two years I have been getting a monthly car allowance of £350 which takes my salary into the 40% tax bracket.
I now need to renew my own personal leased car.
My question is would it be better for me and my company if I took a company car?
Would both not save on the tax paid to HMRC? The car would only be used for personal use and I would not get fuel.
If it would be beneficial to both parties how can I prove this to my company?
And would this mean they would be responsible for the maintenance of the car, road tax etc... (not keen on them insuring it as do not want the hassle of proving further down the line my no-claims with a company car)
Hope this is clear and any advice received would be great
Denise
0
Comments
-
With most company cars it is the responsibility of the company to maintain, tax and insure it.
The big benefit to a company of paying a car allowance is certainty of cost. It may cost them a bit more than just the allowance in employers NI (not sure about that) but overall I would think that most companies benefit by paying an allowance.0
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