Company car and tax - worth it anymore?
Discussion
Just been looking at the company car tax tables for the next few years and it's getting ridiculous.
Even a Zero emission car will be taxed at stupid amounts come 2019.
Mines up soon. Definitely going to opt out and take the cash.
I've worked out that even a basic Audi A4 2.0tdi will be around £250 a month in tax come 2019 for a 40% tax payer. That's just mental.
Even a Zero emission car will be taxed at stupid amounts come 2019.
Mines up soon. Definitely going to opt out and take the cash.
I've worked out that even a basic Audi A4 2.0tdi will be around £250 a month in tax come 2019 for a 40% tax payer. That's just mental.
I agree, in years gone by I've taken the car as it's been a no brainer, but now I've seen the BIK rates for the forthcoming few years it's getting ridiculous.
When they went onto omission based rates in 2003, they said it was all about reducing the CO2's in the world. So how can they warrant a 16% of list price on a ZERO omission car?
Have a look.....for a 40% tax rate payer, in 2019, a crappy £22k Nissan leaf is going to cost £118 a month in tax alone! If you have a cash alternative of say £400/mth, you are net £518 worse off a month. Yes the £400 is gross as there's tax to consider, but then there is tax relief for using your own car so you can balance this out easily to make the £400 a net figure.
Same scenario, but with a bog standard BMW 318d and it's a net cost of £689/mth or £8,268 a year!!
It's only going to get worse and worse after 2019/20....crazy.
When they went onto omission based rates in 2003, they said it was all about reducing the CO2's in the world. So how can they warrant a 16% of list price on a ZERO omission car?
Have a look.....for a 40% tax rate payer, in 2019, a crappy £22k Nissan leaf is going to cost £118 a month in tax alone! If you have a cash alternative of say £400/mth, you are net £518 worse off a month. Yes the £400 is gross as there's tax to consider, but then there is tax relief for using your own car so you can balance this out easily to make the £400 a net figure.
Same scenario, but with a bog standard BMW 318d and it's a net cost of £689/mth or £8,268 a year!!
It's only going to get worse and worse after 2019/20....crazy.
Condi said:
audi321 said:
but then there is tax relief for using your own car so you can balance this out easily to make the £400 a net figure.
Only if you do the business miles. If you have a company car allowance, and use your car for private miles, you dont get any tax relief, unless Im wrong? Gassing Station | Finance | Top of Page | What's New | My Stuff