Valuing company car

[Amateurish]

I'm currently interviewing for a new job and I want to accurately compare the package offered with the one I'm already on. In my current job I get a company car provided, changed fairly frequently. The car has list of about £38k IIRC. Any ideas how to give this benefit an annual cash value?

[Eric Mc]

Check the HMRC tables. The BIK is based on the CO2 emmission rating.

[Amateurish]

Thanks but isn't that more about the taxable value rather than the value to me of having that benefit?

[Eric Mc]

Are you not talking about Benefits in Kind and how they are valued?

[bogie]

As a cash alternative to a fully expensed £38K car, I would be wanting about £700-750 a month car allowance

[niva441]

Amateurish said:

Thanks but isn't that more about the taxable value rather than the value to me of having that benefit?

Yes but it increases the cost of the 'benefit', so I'd want more cash to compensate.

[Engineer1]

So assuming you aren't asking about the financial implications so much, who pays for servicing, insurance, fuel, tyres etc? How much do you use your car for personal use? Do you need a similar car again, can you but for cash or do you need finance? Can you survive without a car? now look at how much it is costing you in tax and weigh up if you feel it is value for money.

[singlecoil]

musclecarmad said:

however, i drive a cheap car day to day (about £20 grand)

How the other half live, eh! I drive a cheap car day to day as well, and it cost £575

[Amateurish]

Eric Mc said:

Are you not talking about Benefits in Kind and how they are valued?

Not really. If my current job provides me with the car, and my new job doesn't, how much extra should I be getting in the new job to be giving me the same deal. Does that make more sense?

[Amateurish]

Engineer1 said:

So assuming you aren't asking about the financial implications so much, who pays for servicing, insurance, fuel, tyres etc? How much do you use your car for personal use? Do you need a similar car again, can you but for cash or do you need finance? Can you survive without a car? now look at how much it is costing you in tax and weigh up if you feel it is value for money.

The issue is really that I want to say to the new employer - I currently get £x basic, £y bonus plus a car which is worth about £z in cash terms.

I could definitely use a (much) less valuable car! So any extra in the paypacket is good news for me.

[Vee]

Amateurish said:

The issue is really that I want to say to the new employer - I currently get £x basic, £y bonus plus a car which is worth about £z in cash terms.

I could definitely use a (much) less valuable car! So any extra in the paypacket is good news for me.

Am I missing something ?
Your current employer provides you use of a car whcih goes back after 3 years.

1. Get a personal lease quote for the same car at the mileage you do.
2. Get an insurance quote
3. Work out the cost of all the petrol they provide for personal use

Add up 1, 2, 3 and that is what the car is worth to you. If you want to be fair then take off the amount of tax you pay.

[Amateurish]

Vee said:

Amateurish said:

The issue is really that I want to say to the new employer - I currently get £x basic, £y bonus plus a car which is worth about £z in cash terms.

I could definitely use a (much) less valuable car! So any extra in the paypacket is good news for me.

Am I missing something ?
Your current employer provides you use of a car whcih goes back after 3 years.

1. Get a personal lease quote for the same car at the mileage you do.
2. Get an insurance quote
3. Work out the cost of all the petrol they provide for personal use

Add up 1, 2, 3 and that is what the car is worth to you. If you want to be fair then take off the amount of tax you pay.

Not missing anything, that's kind of the answer I was looking for. I just wondered if there was a rule of thumb people used.

[johnfm]

Amateurish said:

Vee said:

Amateurish said:

The issue is really that I want to say to the new employer - I currently get £x basic, £y bonus plus a car which is worth about £z in cash terms.

I could definitely use a (much) less valuable car! So any extra in the paypacket is good news for me.

Am I missing something ?
Your current employer provides you use of a car whcih goes back after 3 years.

1. Get a personal lease quote for the same car at the mileage you do.
2. Get an insurance quote
3. Work out the cost of all the petrol they provide for personal use

Add up 1, 2, 3 and that is what the car is worth to you. If you want to be fair then take off the amount of tax you pay.

Not missing anything, that's kind of the answer I was looking for. I just wondered if there was a rule of thumb people used.

Make sure you include the maintenance cost.

And don't forget, you would pay for it out of taxed earnings - so gross up the costs.


So:

monthly costs of car: £650
monthly maintenance costs: £120
monthly motor insurance £ 50

Total costs £820

minus

what you would have paid
in P11D tax payer
(assume 40% tax payer) £220


Net equivalent cost £600

assuming 40% tax, 1% NI

gross up by dividing by

0.59 Gross monthly value £1016.95


So, there you have it as a 'guesstimate'

Tell me the actual car and your annual mileage and it can be done properly.