Cost of company vehicle
Discussion
I've just been doing some figures for the cost of running company vans. As follows:
They are Corsavan 1.3 common rail turbo diesel. They claim 65 mpg combined we are actually getting 57-60 mpg and the figures are based on 55mpg.
All figures annual based on 30000 miles
Road Fund licence £110
Insurance £580 (any driver over 30)
Depreciation £1498 (£6995 cost minus £1000 resale value after 4 years divided by 4)
Service & tyres £300.00
Diesel £4.28 per gallon (93p per litre) minus 17.5% VAT at 55mpg
The total cost is 16 pence per mile.
For 20000 miles it is 18ppm and for 40000 15ppm.
This seems too cheap so can you see if I have made a glaring error.
BTW there is no P11d costs for the employee as it is a van.
I wonder how much 30000 miles by public transport would cost?
They are Corsavan 1.3 common rail turbo diesel. They claim 65 mpg combined we are actually getting 57-60 mpg and the figures are based on 55mpg.
All figures annual based on 30000 miles
Road Fund licence £110
Insurance £580 (any driver over 30)
Depreciation £1498 (£6995 cost minus £1000 resale value after 4 years divided by 4)
Service & tyres £300.00
Diesel £4.28 per gallon (93p per litre) minus 17.5% VAT at 55mpg
The total cost is 16 pence per mile.
For 20000 miles it is 18ppm and for 40000 15ppm.
This seems too cheap so can you see if I have made a glaring error.
BTW there is no P11d costs for the employee as it is a van.
I wonder how much 30000 miles by public transport would cost?
Eric Mc said:
There ARE P11d costs and they are set to soar in a couple of year's time.
I thought there wasn't from April 2005 if the vechicle is only used for business purposes. It says that in my annual Tax Data card from my accountant. Please enlighten me about the P11d in relation to vans.
If a vehicle (ANY vehicle - vans or cars) is only available for business purposes and any private useage is purely incidental, then no BIKs will arise.
However, both cars and vans attract BIKs whenever availability for private useage occurs. As everyone knows, the BIK charge on cars is quite swingeing being based on the car's list price and a percentage based on the car's CO2 emissions.
At the moment, vans attract a flat £500 per annum BIK (which is pretty minimal) but from 6 April 2007 this is increasing to £3,000 per annum.
However, both cars and vans attract BIKs whenever availability for private useage occurs. As everyone knows, the BIK charge on cars is quite swingeing being based on the car's list price and a percentage based on the car's CO2 emissions.
At the moment, vans attract a flat £500 per annum BIK (which is pretty minimal) but from 6 April 2007 this is increasing to £3,000 per annum.
Thanks Eric. What do you have to do to satisfy the revenue that it is for business use only. The vans will be kept at employee's address but they go direct from home to client's premises to carry out their work, is this OK?
And can you see any errors in my calculations for van cost per mile?
And can you see any errors in my calculations for van cost per mile?
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