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Author Topic: Company car tax Q's?  (Read 1895 times)
mex
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« on: July 04, 2008, 01:34:39 PM »

Looking at a new job i will be getting a company car, it will cost me about £100 month in tax on emissions, but i can work out what the benefit in kind wioll cost me (£its approx £6500),

DO I take it this just comes off my no taxable allowence and i just deduct this, so i will be paying tax on all my earnings?

OR

DO I add this to my salary and pay tax on that - my none taxable income still being deduced

Basically i can calculate the tax i pay on the car according to CO2, but not what the BIK will cost me can anyone explain how to calculate it easily, the online calcs dont give me a result.
I need to know what this car will cost me per month total.

BTW audi TT diesel A3 sportline(bit boring), or my currnent fave BMW 123d Msport
 
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Newmanseye
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« Reply #1 on: July 04, 2008, 01:40:28 PM »

take the car allowance, you will be better off
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mex
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« Reply #2 on: July 04, 2008, 01:51:04 PM »

No i wouldn't and it isnt an option, the low friction tyres on the th BMW would cost me a grand a year, then the insurance, also servicing, 42p a mile on 1st 10k then 25p after that wouldnt really pay me if diesel continues to rise at its current rate. Also id rather have to take someone elses car onto building sites and down lanes, than mine
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madasahatstand
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« Reply #3 on: July 04, 2008, 01:53:15 PM »

take the car allowance, you will be better off
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mex
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« Reply #4 on: July 04, 2008, 02:01:23 PM »

ARrrrrrrrrrrrrrrrrgh that isnt an option, also i didn t ask if someone could tell me to take the car awllowence i asked if someone could help me with the BIK,
all anyone says is take the allowence take the allowence well i ve looked into it and its not worth it, remeber you have to insure for business use, so car insurance shoots up, the servicing twice a year wear and tear then the resale valvue of a hammered car, (in a market that is falling), it just doesnt pay me, (new laws state a min spec of car now aswell and will get stricter)
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mex
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« Reply #5 on: July 04, 2008, 02:03:10 PM »

Wheres M3boy when you need him
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« Reply #6 on: July 04, 2008, 02:11:51 PM »


DO I take it this just comes off my no taxable allowence and i just deduct this, so i will be paying tax on all my earnings?
 

Yes this is how it works..
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StuartHopkin
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« Reply #7 on: July 04, 2008, 02:12:14 PM »

Hey Mex

Im a little confused, all it will cost you is the increased tax per month. Any online calculator will be able to show you the tax you will pay on this car. This is normally a percentage of the cars value depending on the Co2 emmisions.

This is then worked back into your tax code, normally creatting a K tax code.

So if the tax on the car works out to £2000, they need to tax an extra £10,000 of wages. They would create this by giving you a K450 code.

So if you earn £20k instead of paying tax on £15k you would pay tax on £30k

The national insurance liablity shown on the P11D at the end of the year is paid by your employer.

I actually agree with you, its rarely a good plan these days to take a car allowance.

Hope this helps.
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kinboshi
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« Reply #8 on: July 04, 2008, 03:09:06 PM »

Have you looked into taking the allowance and then leasing a car?

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« Reply #9 on: July 04, 2008, 04:30:45 PM »

try this one, I gave back my company car cos I was doing no miles and I ended up financially better off , however if you are doing lots of miles it is still a benefit worth having.

http://www.taxbuddies.com/calcShow.php?calc=car
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mex
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« Reply #10 on: July 04, 2008, 08:53:51 PM »

the figure you get for co2 and company car tax is easy to find its about 950 on the BMW, but the benefit in kind is totally different tax, i now get it,if the BIK is about 5k then you will pay tax on all your earnings so your not paying tax on your car but your paying £1000 more PAYE a year.
so the BMW will cos me approx 2k  year. so 6k in 3 years, Business insurance on it would be £700 a year, low friction spec tyres £1000, servicing free in deal on buying, depriciaton 3500 a year approx (about 40k a year) so about 9600 in 3 years. it would be close on allowence once id claimed fuel, It would require diesel to go up no more than 4p a ltr in the next 3 years. Also if something big goes wrong i simply hand the car back.

I did look at leasing but unless you lease it off your own company its difficult, esp as i am using this job as a spring board and will be off in 1 year. most lease deals that favour you are 3 years with big penalties.

looked at the golf GT 170ps this afternoon anyone have on of these? it just felt woolly to me, suppose to be diesel eqv of gti?

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« Reply #11 on: July 04, 2008, 10:15:24 PM »

I take the car every time rather than the allowance mainly as a hassle free option. No need to insure, tax, worry about the number of miles etc. I also don't have to worry about my car if some numpty bumps it.

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MPOWER
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« Reply #12 on: July 05, 2008, 04:51:04 PM »

I Have paid tax on BMW's for years they cost nothing much. I'm still on an L code

Emissions are the most important thing on taxation  and the new Efficient Dynamic BMW123d is
amazing. 200hp in a 2 Litre diesel. 

Emissions: 138.0 g/km 
Economy: 54.3 mpg Combined

The BMW 118D (World green car of the year) 2 Litre Engine 143hp £35 a year road tax  62mpg Combined.


I would never take the cash option. Not worth the drama.

P.M If you want to go ahead and buy a BMW


Regards

M


   
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mex
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« Reply #13 on: July 06, 2008, 02:16:33 PM »

The 123d is so nice in the m sport guise, and !8% tax, i will go for the BMW
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