Company Car or not??

[Marcellus]

Does anyone have a cost model or know when it makes financial sense in terms of mileage to opt into a company car scheme?

[CraigyMc]

Marcellus said:

Does anyone have a cost model or know when it makes financial sense in terms of mileage to opt into a company car scheme?

Factors:

1. Your tax bracket
2. Cost of car
3. C02 emissions of car and fuel type
4. Benefit in kind tax band (A function of the previous two items)
5. The reimbursement policy your company has set
6. Limits on the reimbursement policy set by HMRC
7. Fuel cost, where you happen to shop (including when you're travelling)
8. Cost of a new car (for the company car)
9. Cost of something other than a company car, should you wish to provide your own vehicle instead
10. Running costs of each car (maintenance, consumables like tyres etc)
11. Insurance costs (Business Class 1, usually)
12. Your exact type of use of the car (multiple work locations versus 1 etc)
13. Your willingness to put up with how the lease company maintains the car (eg. are you OK with them deciding on replacement tyre type? - I'm not)

The tax stuff is tricky because there may be liability involved with giving advice.

Having said all that, HMRC have a calculator over here Bottom of this page

C

ps. I'm leaving my company car scheme when my current car runs out - because of the last point on my list.
Happy to see other items I've not considered added to the list.