Company Car ....
Discussion
I know this has probably been done to death but I have just been made an offer and I need some advice from people in the know.
I've been offered a salary of 46k with a 10% bonus per year, there is a pension of 45 per year too.
They have offered the below:
6k car allowance, which would be worth about 3.6k after tax. obviously it allows me to get what I want but my ex wife will also be allowed about £80 a month of this too.
Company car - as the salary is 46k be under the 40% threshold for BIK so this saves me a bit per month but if I get a bonus will they back date me for the difference in BIK as it will push my earnings into the 40% band?
the company are also allowing me to claim my commuting miles back as well but not sure if this makes a difference, yearly mileage will be about 30k with 5k of that personal.
I've been offered a salary of 46k with a 10% bonus per year, there is a pension of 45 per year too.
They have offered the below:
6k car allowance, which would be worth about 3.6k after tax. obviously it allows me to get what I want but my ex wife will also be allowed about £80 a month of this too.
Company car - as the salary is 46k be under the 40% threshold for BIK so this saves me a bit per month but if I get a bonus will they back date me for the difference in BIK as it will push my earnings into the 40% band?
the company are also allowing me to claim my commuting miles back as well but not sure if this makes a difference, yearly mileage will be about 30k with 5k of that personal.
My first thought would be at 30k miles a year, the company car option could be more attractive.
A private buy is going to get a bit of a hammering on residual value and a lease/PCP is going to be expensive (either mileage up front or pay the excess). On a new car, a 60k mile warranty isn't going to last long, so somebody else paying for servicing and repairs has to be a good thing.
A private buy is going to get a bit of a hammering on residual value and a lease/PCP is going to be expensive (either mileage up front or pay the excess). On a new car, a 60k mile warranty isn't going to last long, so somebody else paying for servicing and repairs has to be a good thing.
Harpoon said:
My first thought would be at 30k miles a year, the company car option could be more attractive.
A private buy is going to get a bit of a hammering on residual value and a lease/PCP is going to be expensive (either mileage up front or pay the excess). On a new car, a 60k mile warranty isn't going to last long, so somebody else paying for servicing and repairs has to be a good thing.
that's what I thought, anyone answer the question about the bonus potentially pushing up the BIK contribution?A private buy is going to get a bit of a hammering on residual value and a lease/PCP is going to be expensive (either mileage up front or pay the excess). On a new car, a 60k mile warranty isn't going to last long, so somebody else paying for servicing and repairs has to be a good thing.
Teebs said:
That would be a net of £220 / month to do 30k PA (including what the ex wife would have)
I do the same mileage and have a company car, it's expensive on BIK, but there's literally no worries with it.
but does anyone know what the bonus could potentially do to the BIK? as I don't want a big tax bill at the end of the year.I do the same mileage and have a company car, it's expensive on BIK, but there's literally no worries with it.
phil-sti said:
Company car - as the salary is 46k be under the 40% threshold for BIK so this saves me a bit per month but if I get a bonus will they back date me for the difference in BIK as it will push my earnings into the 40% band?
This isn't true, the calculated benefit value will be added to your P11D (and fuel if included) which is added to your salary for tax purposes, so almost the entire amount would be at 40% taxrsbmw said:
This isn't true, the calculated benefit value will be added to your P11D (and fuel if included) which is added to your salary for tax purposes, so almost the entire amount would be at 40% tax
Agree - so any bonus won’t actually make any difference to the rate of tax payable on the car as you will already be paying 40%JQ said:
phil-sti said:
I've been offered a salary of 46k with a 10% bonus per year, there is a pension of 45 per year too.
Apologies if I'm taking this off topic, but you're going to get a salary of £46,000 per annum and your employer will also pay £45,000 per year into your pension? WOW.
There’s not really enough information to know what the position is. I am a bit worried about the employer offering to pay for commuting - hmrc deem that to be private mileage so it is taxable. If they pay for your fuel to commute to work and you have a company car you might be facing bik on fuel. Which is a massive additional cost - the bik is the co2 percentage (as applied to list price for the car bik) applied to a standard figure which is now something over £20k. Very tax inefficient and would potentially push you wel into 40% tax
The company car bik is an important factor and you’ve not said anything about how much - getting very expensive these days to have a company car in bik terms but if you are going to be doing 30k miles pa it is hard to see how taking the cash option can ever be a good idea
The company car bik is an important factor and you’ve not said anything about how much - getting very expensive these days to have a company car in bik terms but if you are going to be doing 30k miles pa it is hard to see how taking the cash option can ever be a good idea
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