Company car tax

[Tim Falce]

There is a vacancy within my company that I am interested in but it requires the successful applicant to have a company car.
I have looked up on the internet for the tax implications and it seems horrendous the amount of tax you have to pay. I would need at least a Mondeo Estate size car £19-£20K and I also understand that fuel usage is taxed on top of the car.

I don't do a lot of private mileage (probably about 3K) and would be working from home a lot as well so my present mileage commuting would cease.

Bearing in mind the salary will be the same as I get now, is there any way of working out how much the car would actually cost me, I worked it out it would wipe my tax allowance of £5300 out and I would possibly be going into a minus figure.
Have I got this correct and if so what's the point of a Co. car and are there any alternatives?

[Ian Sowman]

It seems quite an unusual role that *requires* you to have a company car, but there you go.

This isn't my specialist area, so I won't give you too much advice. But there is a calculator here that may or may not be useful:

http://www.wenhammajor.co.uk/common/...r_benefit.html

If your salary stays the same and you get a company car on top of that, no matter what the tax implications are I can't see how you would actually lose out. Yes, you may well pay more tax.

Assuming that you pay for fuel and the company re-imburses you for business mileage, that should be tax neutral for you and not really leave you out of pocket. It might be that private fuel is paid for, in which case that is a benefit to you and you will be taxed - but again, you'd still be in a net gain position because someone else would be paying for your private fuel.

[Tim Falce]

I just worked that out as a benefit of £8300 which works out as £1800 or £34 per week if I am working it out correctly.
Not too bad I suppose as I spend that alone on fuel for commuting at the moment.
Mind you I suppose I need to get the job before I worry too much about the car.

[JerH77]

That would suck if it is right falcemob.

[neilwaynesmith]

True, the tax implications can suck....

Try a google search for company car tax calculator, or the Ford Website itself.

One thing to remember, as an offset to the tax liability is;

If it breaks, if the tyres or exhaust wear out etc.... All you have to do is pick up the phone.

[AaronM]

I am a senior payroll manager and I get a lot of people ask me about this. To be honest there sint much difference in getting a company car or not. One one side you get a car allowance which you are taxed on and are also taxed one mileage through the payroll and on the other side you are taxed at the year end through the P11D

It comes down to the car you choose and the emmisions that will really make a difference though as this is how the tax is calculated on the P11D