Company car taxation

[dannyboy75]

Hi all

I start a new job on 2nd January, and have to choose between company car and car allowance.

The company car would also include fuel card, which covers all fuel including private usage. I understand all the stuff about CO2 tax bands and have done a few figures based on a fairly typical 2.0TDI with list price around £23k, and 106g/km emissions.

If you feed the figures into the HMRC calculator it gives these results:

Car benefit charge (2013/2014) £3,688.00
Car fuel benefit charge (2013/2014) £3,376.00


Tax Liability indicator: 20% 40%

Company Car Tax (2013/2014) £737.60 £1,475.20

Company Car Fuel Tax (2013/2014) £675.20 £1,350.40

The only bit I'm unsure about is the actual impact on my take home pay. Assuming for a moment that I stay within the 20% tax bracket, would I have (737.6+675.2)/12 deducted from my monthly pay packet? I know it may sound like a stupid question but I'm a bit thick when it comes to all things tax.

cheers
Danny

[herulach]

Yes, and you'll have to pay bik on the private use fuel also. Unless you do insane miles or are a really bad insurance risk I'd be very surprised if its worthwhile, I do 25k p.a. and couldn't make it worthwhile on mine (2l 150ps leon TDI)

[dannyboy75]

Thanks. Those calcs include the fuel bit, but they're still rather grim reading, especially as in reality I'll be pushed into the 40% tax bracket too.

My total mileage is only around 12k per year, so it sounds like a no-brainer really. Better start scouring Auto trader!

[Tumble]

I know that I'm paying around £40 a month tax for my company car - I have a fuel card but have to pay for private mileage. If I had private mileage included I'd probably be paying somewhere around the £300 a month mark for this motor (guess btw, cba to work it out properly). Bear in mind that a company car will probably work out at about £3k salary benefit in kind as well, which HMRC take out of your allowance....