Company car tax calculator
Discussion
Right i am confused! I have just been through the HMRC Car Tax calculator.
I am changing jobs, and been offered a comapny car or car allowance.
I need to look into the cost of a company car on how much tax i would pay for this out of my take home salary!
I am in the 40% tax bracket, and the car i would take is diesel in and has a CO2 rating for 220.
can anyone help me this? absolutely confused!
I am changing jobs, and been offered a comapny car or car allowance.
I need to look into the cost of a company car on how much tax i would pay for this out of my take home salary!
I am in the 40% tax bracket, and the car i would take is diesel in and has a CO2 rating for 220.
can anyone help me this? absolutely confused!
A diesel with 220 co2 would be in the 35% bracket.
So you will be taxed 35% of the list price of the car.
Example;
£20k List
35% of £20k = £7k Benefit
So you will pay 40% Tax on £7k which is £2.8k pa or £233pm
If you take the allowance then it will simply be added to your salary and taxed as such.
So you will be taxed 35% of the list price of the car.
Example;
£20k List
35% of £20k = £7k Benefit
So you will pay 40% Tax on £7k which is £2.8k pa or £233pm
If you take the allowance then it will simply be added to your salary and taxed as such.
Edited by 1 on Monday 21st July 11:39
seriously mate - I have just come off a car allowance and into the company car scheme with my new job (didnt have a choice).
A car allowance is a much better way to go - okay you'll pay 40% tax on the allowance, but as above, your looking at a huge lump of tax from a company car.
I wouldn't lease either, buy a 2-3 year old car and you'll be in the money
A car allowance is a much better way to go - okay you'll pay 40% tax on the allowance, but as above, your looking at a huge lump of tax from a company car.
I wouldn't lease either, buy a 2-3 year old car and you'll be in the money
Fidgits said:
seriously mate - I have just come off a car allowance and into the company car scheme with my new job (didnt have a choice).
A car allowance is a much better way to go - okay you'll pay 40% tax on the allowance, but as above, your looking at a huge lump of tax from a company car.
I wouldn't lease either, buy a 2-3 year old car and you'll be in the money
Thanks, i am looking for a small economical car to get me to/from work. A car allowance is a much better way to go - okay you'll pay 40% tax on the allowance, but as above, your looking at a huge lump of tax from a company car.
I wouldn't lease either, buy a 2-3 year old car and you'll be in the money
The scoob just is not eco enough anymore! but i am on the lookout for a V8 Volvo for a family car so need a small eco petrol for to and from work runs. Looking at either a Megane or a Clio! either lease or buy 3 year old one
I wouldn't automatically discount the company car.
There is a lot to be said for having a car where everything is paid for!!! Depends on the mileage and usage.
I do 35k pa and the company car is a much easier option for me, I simply chose a car with lower CO2.
If you get a car with emissions below 120 co2, on a £20k car would take your monthly tax bill down from £233 to £86.
There is a lot to be said for having a car where everything is paid for!!! Depends on the mileage and usage.
I do 35k pa and the company car is a much easier option for me, I simply chose a car with lower CO2.
If you get a car with emissions below 120 co2, on a £20k car would take your monthly tax bill down from £233 to £86.
Edited by 1 on Monday 21st July 12:16
1 said:
I wouldn't automatically discount the company car.
There is a lot to be said for having a car where everything is paid for!!! Depends on the mileage and usage.
I do 35k pa and the company car is a much easier option for me, I simply chose a car with lower CO2.
If you get a car with emissions below 120 co2, on a £20k car would take your monthly tax bill down from £233 to £86.
pah... perhaps thats where I went wrong - sure i looked at the 'Bluemotion' cars, but ended up with a 170bhp derv... oh well.There is a lot to be said for having a car where everything is paid for!!! Depends on the mileage and usage.
I do 35k pa and the company car is a much easier option for me, I simply chose a car with lower CO2.
If you get a car with emissions below 120 co2, on a £20k car would take your monthly tax bill down from £233 to £86.
1 said:
I wouldn't automatically discount the company car.
There is a lot to be said for having a car where everything is paid for!!! Depends on the mileage and usage.
I do 35k pa and the company car is a much easier option for me, I simply chose a car with lower CO2.
If you get a car with emissions below 120 co2, on a £20k car would take your monthly tax bill down from £233 to £86.
I'm in the same boat as the OP, I'd get £5000 less tax back from the company plus tax which all equates to about £400 a month. Privately leasing a car with maintenance and a 30k mile per annum plan would cost about the same.There is a lot to be said for having a car where everything is paid for!!! Depends on the mileage and usage.
I do 35k pa and the company car is a much easier option for me, I simply chose a car with lower CO2.
If you get a car with emissions below 120 co2, on a £20k car would take your monthly tax bill down from £233 to £86.
Edited by 1 on Monday 21st July 12:16
Buying a 2/3 year old car privately might be a better bet but you have all the bills to contend with and the massive depreciation of a high miler
Company plan works fine, especially for a 118d or new Accord (2.2 puts it into the higher tax bracket so better fuel rate)
Fidgits said:
seriously mate - I have just come off a car allowance and into the company car scheme with my new job (didnt have a choice).
A car allowance is a much better way to go - okay you'll pay 40% tax on the allowance, but as above, your looking at a huge lump of tax from a company car.
I wouldn't lease either, buy a 2-3 year old car and you'll be in the money
Don't forget to factor in the Employee's NI element as well. Your Car Allowance is taxed and NI'd just like "normal" salary.A car allowance is a much better way to go - okay you'll pay 40% tax on the allowance, but as above, your looking at a huge lump of tax from a company car.
I wouldn't lease either, buy a 2-3 year old car and you'll be in the money
A company car does not attract Employee's NI (it is subject to Employer's NI but that has no affect on your take home pay).
Fidgits said:
1 said:
I wouldn't automatically discount the company car.
There is a lot to be said for having a car where everything is paid for!!! Depends on the mileage and usage.
I do 35k pa and the company car is a much easier option for me, I simply chose a car with lower CO2.
If you get a car with emissions below 120 co2, on a £20k car would take your monthly tax bill down from £233 to £86.
pah... perhaps thats where I went wrong - sure i looked at the 'Bluemotion' cars, but ended up with a 170bhp derv... oh well.There is a lot to be said for having a car where everything is paid for!!! Depends on the mileage and usage.
I do 35k pa and the company car is a much easier option for me, I simply chose a car with lower CO2.
If you get a car with emissions below 120 co2, on a £20k car would take your monthly tax bill down from £233 to £86.
1 said:
Fidgits said:
1 said:
I wouldn't automatically discount the company car.
There is a lot to be said for having a car where everything is paid for!!! Depends on the mileage and usage.
I do 35k pa and the company car is a much easier option for me, I simply chose a car with lower CO2.
If you get a car with emissions below 120 co2, on a £20k car would take your monthly tax bill down from £233 to £86.
pah... perhaps thats where I went wrong - sure i looked at the 'Bluemotion' cars, but ended up with a 170bhp derv... oh well.There is a lot to be said for having a car where everything is paid for!!! Depends on the mileage and usage.
I do 35k pa and the company car is a much easier option for me, I simply chose a car with lower CO2.
If you get a car with emissions below 120 co2, on a £20k car would take your monthly tax bill down from £233 to £86.
the 320d M sport I looked at had a higher rate of tax than the A4 TDi i got?
Fidgits said:
1 said:
Fidgits said:
1 said:
I wouldn't automatically discount the company car.
There is a lot to be said for having a car where everything is paid for!!! Depends on the mileage and usage.
I do 35k pa and the company car is a much easier option for me, I simply chose a car with lower CO2.
If you get a car with emissions below 120 co2, on a £20k car would take your monthly tax bill down from £233 to £86.
My 07 MY has 131 g CO2 which puts it in the 15% bracket plus the 3% loading for diesel. Only the new 08NY120ps AThere is a lot to be said for having a car where everything is paid for!!! Depends on the mileage and usage.
I do 35k pa and the company car is a much easier option for me, I simply chose a car with lower CO2.
If you get a car with emissions below 120 co2, on a £20k car would take your monthly tax bill down from £233 to £86.
pah... perhaps thats where I went wrong - sure i looked at the 'Bluemotion' cars, but ended up with a 170bhp derv... oh well.
the 320d M sport I looked at had a higher rate of tax than the A4 TDi i got?
I am back again, i have found my idea company car off the list at a figure of 119g/CO2. so the BIK liability for the year is £963.
As i have never had a company car before, I need to work out what my take home pay is likely to be with the BIK deduction.
Do they just redice my Tax code to reflect the BIK
so 4988 - 963 - 4025
Therefor my new tax code is 402L?? or of the BIK taken off as 1/12th of my monthly salary so deducting 963/12 everymonth?
I have decided to get the comapny car as the car allowance is rather low. and if i take the car it would mean tht i would not have to put £30 worth of petrol on my car a week and only £10 in the comapny one for my normal weekely travel.
Thanks in advance.
As i have never had a company car before, I need to work out what my take home pay is likely to be with the BIK deduction.
Do they just redice my Tax code to reflect the BIK
so 4988 - 963 - 4025
Therefor my new tax code is 402L?? or of the BIK taken off as 1/12th of my monthly salary so deducting 963/12 everymonth?
I have decided to get the comapny car as the car allowance is rather low. and if i take the car it would mean tht i would not have to put £30 worth of petrol on my car a week and only £10 in the comapny one for my normal weekely travel.
Thanks in advance.
Is your employer going to pay for all or some of your fuel?
If so, have you included the Fuel Charge BIK in your calculations.
BIKs are taxed by the Revenue by adjusting your PAYE coding by the appropriate amounts.
Employers are supposed to notify the Revenue DURING the tax year when a car is made available to an employee or when a car is changed. They fill in a form called a P46(Car) which provides the Revenue with the details they need. The PAYE Code for the employee is then changed. If all works the way it should, your PAYE Code for any given tax year should reflect correctly the BIK you are receiving in respect of a car and/or car fuel benefits for that tax year.
In reality, of course, car benefit details are sometimes not supplied to the Revenue by the employer or, if they are, the Revenue fail to adjust them accordingly. So, sometimes an individual's BIK situation and PAYE Coding can get very muddled and out of sync with the true situation.
Matters are complicated by the fact that, after the tax year ends, the employer has to provide ANOTHER BIK form to the Revenue. This should re-iterate all the car details previously supplied during the year on the P46 (Car) and it will also include details of all other non-car related Benefits - such as Private Medical Insurance etc.
If you are still following this
, you will have worked out that your PAYE Coding should reflect;
i) Car Benifits as they are for the current tax year
ii) other Benefits as they were for the previous tax year
It's all very simple, isn't it
If so, have you included the Fuel Charge BIK in your calculations.
BIKs are taxed by the Revenue by adjusting your PAYE coding by the appropriate amounts.
Employers are supposed to notify the Revenue DURING the tax year when a car is made available to an employee or when a car is changed. They fill in a form called a P46(Car) which provides the Revenue with the details they need. The PAYE Code for the employee is then changed. If all works the way it should, your PAYE Code for any given tax year should reflect correctly the BIK you are receiving in respect of a car and/or car fuel benefits for that tax year.
In reality, of course, car benefit details are sometimes not supplied to the Revenue by the employer or, if they are, the Revenue fail to adjust them accordingly. So, sometimes an individual's BIK situation and PAYE Coding can get very muddled and out of sync with the true situation.
Matters are complicated by the fact that, after the tax year ends, the employer has to provide ANOTHER BIK form to the Revenue. This should re-iterate all the car details previously supplied during the year on the P46 (Car) and it will also include details of all other non-car related Benefits - such as Private Medical Insurance etc.
If you are still following this
, you will have worked out that your PAYE Coding should reflect;i) Car Benifits as they are for the current tax year
ii) other Benefits as they were for the previous tax year
It's all very simple, isn't it
Edited by Eric Mc on Thursday 24th July 10:04
Eric, Many Thanks
I will not be reciving any fuel card or Fuel payments for private use.
I have used the HMRC site to work out the BIK, so now if i use the http://listentotaxman.com site i should be able to work out my take home pay
Many Thansk
I will not be reciving any fuel card or Fuel payments for private use.
I have used the HMRC site to work out the BIK, so now if i use the http://listentotaxman.com site i should be able to work out my take home pay
Many Thansk
If you see no sign that your PAYE Coding is being adjusted, say after 3 or 4 weeks from being given the company car, chase up both your employer and/or the Revenue to make sure that the coding is changed.
If you leave it until after 5 April, next year's tax code could show a double BIK hit - one to correct for tax overpaid in 2008/09 and the other to account for the 2009/10 BIK.
If you leave it until after 5 April, next year's tax code could show a double BIK hit - one to correct for tax overpaid in 2008/09 and the other to account for the 2009/10 BIK.
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