Company Cars again...

Company Cars again...

Author
Discussion

dirtbike

Original Poster:

6 posts

150 months

Thursday 11th December 2014
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Hi Guys, Long time lurker first time poster... I think...

I've done some research and found lots of very helpful information regarding the options regarding company car and the tax implications but I've not found any scenario that fits what I'm trying to achieve so I'm hoping someone can help.

Here's my situation:
We currently lease a car including tyres and maintenance for a defined period of time.
This is then classified as a benefit in kind (BIK) and the P11D value is divided by the published BIK % which is treated as income and taxed accordingly.

Regarding the fuel situation we use a company fuel card for all fuel and pay back any personal mileage in accordance to HMRC recommended rates based on engine capacity (11p,13p and 16p IIRC).

Because the Tax implications are quite high with running a Company car unless you have a relatively boring eco friendly car, I'm trying to find out if I would have a better selection of vehicle if I were to lease personally or purchase my own car and take an increase in salary to offset the costs.

From the research I've done I understand that I would have to insure and maintain the car to road worthy standard out of my own pocket, but the bit I'm struggling with is the fuel side of things...

Ideally I would like to maintain the current agreement where I use the company card for all fuel and reimburse the company for all private mileage backed by recorded mileage sheets as I believe the most common option in this scenario is for me to pay for all the fuel and then claim back business mileage at 45p per mile for the first 10k and 25p there after, however, I can see this being significantly more expensive to my employer than the current arrangement.

My current mileage estimates are as follows:
12,000 Business Miles per annum.
6,000 Personal Miles per annum.

I'm also a shareholder in the business so could the salary increase if I go the private car route be made as dividends like I currently receive. I'm a 20% Tax payer.

Kind regards
Nick

dirtbike

Original Poster:

6 posts

150 months

Friday 19th December 2014
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Any thoughts or opinions?

Eric Mc

121,779 posts

264 months

Friday 19th December 2014
quotequote all
You are asking for detailed computation - which is a bit cheeky.

dirtbike

Original Poster:

6 posts

150 months

Saturday 20th December 2014
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Thank you for your detailed reply, merry Christmas to all, sorry to have wasted your time...

Edited by dirtbike on Tuesday 23 December 13:09

michael gould

5,691 posts

240 months

Tuesday 23rd December 2014
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Eric Mc said:
You are asking for detailed computation - which is a bit cheeky.
totally agree....pay an accountant like the rest of us smile

Eric Mc

121,779 posts

264 months

Tuesday 23rd December 2014
quotequote all
dirtbike said:
Sorry if I offended anyone I wasn't looking for a detailed tax analysis...

I was hoping that someone could clarify the fuel situation and answer whether I could use a company issued fuel card for all fuel and then pay back the private mileage at the current HMRC recommended rates?

I put as much info into my post as possible to make it easier to for anyone with experience to answer. I'm not looking for someone to work out which is the most cost effective and tax efficient as I'm prepared to do the calculations myself, just need to clarify what I'm allowed to do with regards to fuel...

Anyway, if anyone is able to offer some advice on this I'd gratefully appreciate it.
The problem is that your question can only be answered properly by somebody sitting down and crunching the numbers.

I'm happy to give general advice and pointers - but I'm not going to sit down and do detailed sums.

dirtbike

Original Poster:

6 posts

150 months

Tuesday 23rd December 2014
quotequote all
Thank you for your detailed reply, merry Christmas to all, sorry to have wasted your time...