Company car info please?

Assume I have a job earning 拢28000 and take home approx 拢1600 per month.



If I was offered a company car, would my take home pay be affected????



Assume the car would be used for travelling to and from work, I work on various sites around the UK and consequently do a LOT of miles every year (30 000 plus). The fuel is paid for by the company and everything else, but if I were to use it privately I would have to pay the fuel myself.

the car is a standard Vauxhall vectra petrol 1.8


the inland revenue site is way too complicated!!

I just need to know if a company car would be worth taking.


Any tax whizzo's out there?

The taxable benefit on the car would be 35% of the list price of the vehicle. The tax payable on this would be at 22% based on your current salary. The tax due would be collected through your salary. You would need to work out what this comes to in order to see if its worth while.
For example, if the list price of the car is 拢15k, the taxable benefit would be 拢5250 and the tax due on this would be 拢1155. If you think you could run your own car - insurance, tax, servicing, interest on loan, etc for less than this, then a company car is not for you.
As the previous answerer has said, your employer would probably pay a mielage allowance for you to use your own car and this is payable at 40p and then 25p tax free. If your employer didn't pay this, you could reclaim it from tax at 22%. However, people on other forums are saying that 40p a mile no longer covers the cost of motoring and so you might want to claim on the basis of the actual running costs of the car - means more record keeping, but may be worthwhile.
E mail me if you want more info - as you say, thre are many alternatives and it could be complicated.

You basically have 2 options....

1. Take the company car. With this you will be liable for benefit in kind taxation. this will affect your tax code, and definitely will reduce your take home pay. By how much I don;t know. Sorry. You will have to prove that when you use the car for personal use, that you are paying for petrol yourself.

2. The other option is to use your own car, and charge the company back for the business mileage. This is a good way of making a bit of money. The norm is 40p per mile for the first 10k, then 24p there after. Taking into account an average MPG for a 1.8 ltr car, you can make about an extra 2.5k per yr. because of the mileage you do, this does not really work for you, as with this 2.5k, you have to finance a car, and maintain it.

I only do about 10k per yr for work, and i can make an extra 3k over and above my salary. (my firm pays a flat 36p per mile).

In your case, I would say that taking the company car would be the best bet for you.

hope this sort of helped.