The definative Co Car vs Private Car thread . . .
Discussion
As a fair few people here are business owners (I guess) can we get a "definative" co car thread going with some actual implications on costs/tax etc - Eric MC seems to know what he is on about and I for one would welcome an ABSOLUTE idea of costs/tax etc.
The Scenario . . .
Employee (not director) - PAYE
Car - Mercedes SL500 2002 cost price in 2002 £67150
Servicing £1000 pa
Tyres - £1000 pa
RFL - £300
Petrol - £5 per gallon
Insurance £1000 pa
Cost of used car £35000
Deposit £20000
HP - £460 pm x 36
20,000 business miles pa
Tax code 522L
Co car vs Private car please
Khushy
The Scenario . . .
Employee (not director) - PAYE
Car - Mercedes SL500 2002 cost price in 2002 £67150
Servicing £1000 pa
Tyres - £1000 pa
RFL - £300
Petrol - £5 per gallon
Insurance £1000 pa
Cost of used car £35000
Deposit £20000
HP - £460 pm x 36
20,000 business miles pa
Tax code 522L
Co car vs Private car please
Khushy
There's not enough information there:
How much is the car allowance?
How much is the company paying per mile for business use?
What is the anticipated private mileage?
Would a company car come with fuel card for private use?
Further, to do a company vs private car comparison, what are we comparing this to?
It seems straightforward, but the permutations are many.
There are also intangibles - some people like the idea of having their own car which they keep if they get fired. Other people would hate to lumbered with a car, especially one that has big finance payments.
It's also worth noting the type of use - some people are required to leave their cars in laybys all day, or in dodgy hotels car parks overnight. You don't give a toss if it's a company car but it's a different kettle of fish it it's your own (especially something a bit 'flash').
How much is the car allowance?
How much is the company paying per mile for business use?
What is the anticipated private mileage?
Would a company car come with fuel card for private use?
Further, to do a company vs private car comparison, what are we comparing this to?
It seems straightforward, but the permutations are many.
There are also intangibles - some people like the idea of having their own car which they keep if they get fired. Other people would hate to lumbered with a car, especially one that has big finance payments.
It's also worth noting the type of use - some people are required to leave their cars in laybys all day, or in dodgy hotels car parks overnight. You don't give a toss if it's a company car but it's a different kettle of fish it it's your own (especially something a bit 'flash').
Edited by Deva Link on Sunday 27th May 22:59
And the one thing I am not going to do is sit down and run complex calculations on such matters. I am happy to give general advice and remind people of the principles behind certain accounting and tax rules.
There are a number of places on the internet where one can run "what if" scenarios on company cars.
There are a number of places on the internet where one can run "what if" scenarios on company cars.
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