Company car... would you?
Discussion
Lots of threads on this, there are many dependancies to look at before choosing. Are they also offering an allowance in leiu of a company car? Are you being offered a fuel card?
The tax you pay is dependant on the list price of the vehicle plus any accesories and the CO2 emmisions. Tax, insurance, tyres servicing etc is usualy carried out by the company.
m 2p is that if you are doing high mileage then the company car can make sense otherwise you are usualy better off funding your own vehicle with an allowance.
The tax you pay is dependant on the list price of the vehicle plus any accesories and the CO2 emmisions. Tax, insurance, tyres servicing etc is usualy carried out by the company.
m 2p is that if you are doing high mileage then the company car can make sense otherwise you are usualy better off funding your own vehicle with an allowance.
I'm struggling with this myself.
I currently have 2 options;
1) Company car up to a lease value of £350 per month
or
2) A car allowance of £4900 per year, with the payments added onto my wage each month: (wage + allowance)/12 months
If I take the company car, the cost to me will be about £50 per month taken off my wages in tax every month, but all the running costs like servicing, tyres, insurance (etc) is covered. So, about £600 for a years motoring.
If I take the allowance, I have to pay for my own insurance, VED, servicing, repairs, etc. That could soon eat away at the allowance, e.g.
£4900 - £980 20% tax - £800 insurance - £120 VED - £500 Service - £250 tyres = £2250 to cover unforseen repairs and to put towards buying the next car.
I see the allowance route as being higher risk, as I might get big repair bills. I would also have the hassle of selling on the cars each time and to arrange my insurance and tax.
Also, I wont have a car soon, so if I had to buy my own car, it would be generally old and rubbish compared to what I can get as a company car.
Either way, there is no fuel card, so I will have to pay for fuel then claim back mileage.
Not sure what to do.
I currently have 2 options;
1) Company car up to a lease value of £350 per month
or
2) A car allowance of £4900 per year, with the payments added onto my wage each month: (wage + allowance)/12 months
If I take the company car, the cost to me will be about £50 per month taken off my wages in tax every month, but all the running costs like servicing, tyres, insurance (etc) is covered. So, about £600 for a years motoring.
If I take the allowance, I have to pay for my own insurance, VED, servicing, repairs, etc. That could soon eat away at the allowance, e.g.
£4900 - £980 20% tax - £800 insurance - £120 VED - £500 Service - £250 tyres = £2250 to cover unforseen repairs and to put towards buying the next car.
I see the allowance route as being higher risk, as I might get big repair bills. I would also have the hassle of selling on the cars each time and to arrange my insurance and tax.
Also, I wont have a car soon, so if I had to buy my own car, it would be generally old and rubbish compared to what I can get as a company car.
Either way, there is no fuel card, so I will have to pay for fuel then claim back mileage.
Not sure what to do.
Adam111 said:
OK, thanks.
No major miles at all - just the daily commute of up to 30 miles.
Know the tax is expensive - not worth it for the little mileage I'd be covering, and I'd have no problem funding a little commuter myself?
Well if the question is simply company car or not, the answer is clearly yes! If you are worried about tax, get a car with low CO2 and the tax bill will be low (much cheaper than running a car yourself). No major miles at all - just the daily commute of up to 30 miles.
Know the tax is expensive - not worth it for the little mileage I'd be covering, and I'd have no problem funding a little commuter myself?
Get yourself a Nissan Leaf, and there's no tax to pay at all.
If they are offering a car allowance in lieu, then the question gets more complex.
It depends I ran my own car for 18 months on a car allowance but the mileage I was doing meant it didn't make sense even though I claimed 45p x 10k and 25p there after maximum plus a £600 monthly allowance. (the car I was running wasn't cheap to run though)
I took a company car in the end.
Skodasupercar said:
Adam111 said:
Know the tax is expensive - not worth it for the little mileage I'd be covering
Really? I pay less than £60 a month in tax on my car. Try running a snotter for that!my 2p is that the co car list is usually restrictive...loads of bland 1.6 litre stuff. but it comes down to personal preference.
The OP said company car, not car allowance.
To my mind it is a no brainer.
I currently have a Superb, pay just under £60 a month and that is it. All bills paid for.
If I ran that car myself, HP would be what, £200 pm, plus insurance plus road tax plus depreciation plus tyres etc etc.
I have had company cars for the last 8 years and I wouldn't have it any other way.
Frees me up to spend monies on my toy/weekend car.
To my mind it is a no brainer.
I currently have a Superb, pay just under £60 a month and that is it. All bills paid for.
If I ran that car myself, HP would be what, £200 pm, plus insurance plus road tax plus depreciation plus tyres etc etc.
I have had company cars for the last 8 years and I wouldn't have it any other way.
Frees me up to spend monies on my toy/weekend car.
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