Can someone tell me about company cars...
Discussion
SS2. said:
monthefish said:
Basically, I know nothing on this subject, so enlighten me please.
What is it (specifically) that you want to know ?I get the fact that the company buys/owns (& insures/maintains/MOT's/taxs?) the car, and the employee drives the car, but:
Is it for work related use only?
Is commuting to/from work permitted?
Is social use permitted?
(or is all of that insurer dependent?)
How does it work financially? (i.e. I understand there are tax implications for both company and user, and that can in turn affect salary/renumeration)
I assume the finacial side of things will also be affected by the answer to question 1.
Who creates this 'choice list' - is that each company/their fleet manager?
Are they constrained, or just guided, by certain criteria (the obvious one being Co2 emmissions?)
I'll tell you about mine.
I get a car allowance of £6k a year/£500 pm. I can also pick any car I like under 160 CO2 from our company lease provider that comes under said figure per month.
It's on a 20k p/a 36 month maintained contract.
I picked this time a Polo GTI. It came in at £375pm including the VAT the company can't reclaim. Therefore I get £125pm back from the unused allowance.
I also take the company private fuel option.
The Benefit in Kind on this car is £3079 and the fuel is £3196. Added together is £6275. This then reduces my personal allowance by the said amount £7475-6275=£1200 meaning my tax code is 120L assuming no other employee benefits.
In real terms this means a 20% tax payer would pay £51.30 per month for my car and £53.25 for the fuel per month. A 40% tax payer would pay approx double that.
Hope this helps.
I get a car allowance of £6k a year/£500 pm. I can also pick any car I like under 160 CO2 from our company lease provider that comes under said figure per month.
It's on a 20k p/a 36 month maintained contract.
I picked this time a Polo GTI. It came in at £375pm including the VAT the company can't reclaim. Therefore I get £125pm back from the unused allowance.
I also take the company private fuel option.
The Benefit in Kind on this car is £3079 and the fuel is £3196. Added together is £6275. This then reduces my personal allowance by the said amount £7475-6275=£1200 meaning my tax code is 120L assuming no other employee benefits.
In real terms this means a 20% tax payer would pay £51.30 per month for my car and £53.25 for the fuel per month. A 40% tax payer would pay approx double that.
Hope this helps.
fastbox said:
Basically these are vehicles a company would lease from a leasing company on a set term, ie 3 or 4 yrs. The companies employees would have a set list of vehicle to order from and would use the leasing company for ordering, maintaining and some or all administration...
OK. What about a car owned by the company itself?
depends company to company.for example on ours
Is it for work related use only? - Nope anything other the motorsports etc
Is commuting to/from work permitted? - yes but first 15 miles for us not counted
Is social use permitted? - yes
(or is all of that insurer dependent?)
How does it work financially? (i.e. I understand there are tax implications for both company and user, and that can in turn affect salary/renumeration)- its a benefit in kind and changes your tax code to a k code money is taken as addition tax on your wages
I assume the finacial side of things will also be affected by the answer to question 1.
Who creates this 'choice list' - is that each company/their fleet manager?
Are they constrained, or just guided, by certain criteria (the obvious one being Co2 emmissions?) - ours are based around value and co2 and deals with certain suppliers
Is it for work related use only? - Nope anything other the motorsports etc
Is commuting to/from work permitted? - yes but first 15 miles for us not counted
Is social use permitted? - yes
(or is all of that insurer dependent?)
How does it work financially? (i.e. I understand there are tax implications for both company and user, and that can in turn affect salary/renumeration)- its a benefit in kind and changes your tax code to a k code money is taken as addition tax on your wages
I assume the finacial side of things will also be affected by the answer to question 1.
Who creates this 'choice list' - is that each company/their fleet manager?
Are they constrained, or just guided, by certain criteria (the obvious one being Co2 emmissions?) - ours are based around value and co2 and deals with certain suppliers
monthefish said:
Is it for work related use only?
Is commuting to/from work permitted?
Is social use permitted?
(or is all of that insurer dependent?)
How does it work financially? (i.e. I understand there are tax implications for both company and user, and that can in turn affect salary/renumeration)
I assume the finacial side of things will also be affected by the answer to question 1.
Who creates this 'choice list' - is that each company/their fleet manager?
Are they constrained, or just guided, by certain criteria (the obvious one being Co2 emmissions?)
Use depends on the company.Is commuting to/from work permitted?
Is social use permitted?
(or is all of that insurer dependent?)
How does it work financially? (i.e. I understand there are tax implications for both company and user, and that can in turn affect salary/renumeration)
I assume the finacial side of things will also be affected by the answer to question 1.
Who creates this 'choice list' - is that each company/their fleet manager?
Are they constrained, or just guided, by certain criteria (the obvious one being Co2 emmissions?)
Financially you pay tax depending on the car; You can find details for specific cars on http://www.comcar.co.uk/
If you have a fuel card with a company car then you pay tax on a fixed sum of money. The website will also show this.
The fleet manager/company will create the car list. Generally a different list per employee/pay grade. Most companies I find these days only offer very low Co2 cars (ecoflex / drivE / etc).
sklar said:
I'll tell you about mine.
I get a car allowance of £6k a year/£500 pm. I can also pick any car I like under 160 CO2 from our company lease provider that comes under said figure per month.
It's on a 20k p/a 36 month maintained contract.
I picked this time a Polo GTI. It came in at £375pm including the VAT the company can't reclaim. Therefore I get £125pm back from the unused allowance.
I also take the company private fuel option.
The Benefit in Kind on this car is £3079 and the fuel is £3196. Added together is £6275. This then reduces my personal allowance by the said amount £7475-6275=£1200 meaning my tax code is 120L assuming no other employee benefits.
In real terms this means a 20% tax payer would pay £51.30 per month for my car and £53.25 for the fuel per month. A 40% tax payer would pay approx double that.
Hope this helps.
That's just a car allowance surely? I get a car allowance of £6k a year/£500 pm. I can also pick any car I like under 160 CO2 from our company lease provider that comes under said figure per month.
It's on a 20k p/a 36 month maintained contract.
I picked this time a Polo GTI. It came in at £375pm including the VAT the company can't reclaim. Therefore I get £125pm back from the unused allowance.
I also take the company private fuel option.
The Benefit in Kind on this car is £3079 and the fuel is £3196. Added together is £6275. This then reduces my personal allowance by the said amount £7475-6275=£1200 meaning my tax code is 120L assuming no other employee benefits.
In real terms this means a 20% tax payer would pay £51.30 per month for my car and £53.25 for the fuel per month. A 40% tax payer would pay approx double that.
Hope this helps.
fastbox said:
Basically these are vehicles a company would lease from a leasing company on a set term, ie 3 or 4 yrs. The companies employees would have a set list of vehicle to order from and would use the leasing company for ordering, maintaining and some or all administration...
In my case the opposite is true. You can't choose what car you want and my firm buy their vehicles and sell when knackered.
monthefish said:
fastbox said:
Basically these are vehicles a company would lease from a leasing company on a set term, ie 3 or 4 yrs. The companies employees would have a set list of vehicle to order from and would use the leasing company for ordering, maintaining and some or all administration...
OK. What about a car owned by the company itself?
The company I worked for that gave me a co car bought them outright. There was no set list, it was negotiable (ie I just had to choose something sensible).
Ari said:
monthefish said:
fastbox said:
Basically these are vehicles a company would lease from a leasing company on a set term, ie 3 or 4 yrs. The companies employees would have a set list of vehicle to order from and would use the leasing company for ordering, maintaining and some or all administration...
OK. What about a car owned by the company itself?
The company I worked for that gave me a co car bought them outright. There was no set list, it was negotiable (ie I just had to choose something sensible).
Did having this car affect your salary/taxation?
Ari said:
sklar said:
I'll tell you about mine.
I get a car allowance of £6k a year/£500 pm. I can also pick any car I like under 160 CO2 from our company lease provider that comes under said figure per month.
It's on a 20k p/a 36 month maintained contract.
I picked this time a Polo GTI. It came in at £375pm including the VAT the company can't reclaim. Therefore I get £125pm back from the unused allowance.
I also take the company private fuel option.
The Benefit in Kind on this car is £3079 and the fuel is £3196. Added together is £6275. This then reduces my personal allowance by the said amount £7475-6275=£1200 meaning my tax code is 120L assuming no other employee benefits.
In real terms this means a 20% tax payer would pay £51.30 per month for my car and £53.25 for the fuel per month. A 40% tax payer would pay approx double that.
Hope this helps.
That's just a car allowance surely? I get a car allowance of £6k a year/£500 pm. I can also pick any car I like under 160 CO2 from our company lease provider that comes under said figure per month.
It's on a 20k p/a 36 month maintained contract.
I picked this time a Polo GTI. It came in at £375pm including the VAT the company can't reclaim. Therefore I get £125pm back from the unused allowance.
I also take the company private fuel option.
The Benefit in Kind on this car is £3079 and the fuel is £3196. Added together is £6275. This then reduces my personal allowance by the said amount £7475-6275=£1200 meaning my tax code is 120L assuming no other employee benefits.
In real terms this means a 20% tax payer would pay £51.30 per month for my car and £53.25 for the fuel per month. A 40% tax payer would pay approx double that.
Hope this helps.
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