Company car??

[RatCav]

Just about to complete my 6 month induction and the company I am working for is saying they are going to keep me on board and offer me some options. One of which is a company car. Now I travel 80 odd miles to work and back total. The thing which is confusing me is how the company car tax thing works along with the tax thing on fuel.

Can anyone put it in plain and simple terms please. It seems at first its not really worth it as I will still keep the Trooper and to be honest don't need another car. Another option is a Fuel card but that also has a tax hit on it. How much would it be taking into account seeing as I am doing about 1850 miles a month to and from work alone.

[BadBoy]

Ask them to give you a van instead. You don't pay any tax on a van or the fuel provided you only use it to and from work

Try here http://www.hmrc.gov.uk/calcs/cars.htm
This should tell you if your better off with a company car or not, and if you should reimburse your company for the fuel.

[BoxCleva]

[BoxCleva]

Sorry B.Boy , looks like our posts crossed.

[snapper]

For what it's worth have you considered going down the Car Allowance route?

My lot do it instead of handing out company cars. Monthly payout (which is not bad) but it's still taxed (classed as income) and you do have to provide a vehicle (I just went and got a fleabay 2.8 td and use that) also repairs and fuel arent included. Obviously any mileage done that's works related is claimable from the company and you can claim back off your tax any difference between the company MMA and the reccomended rate given by the tax man. Get the sums right and it can be very cheap motoring.

[james'll fix it]

Depends on the car, I pay around 50 pound a month for the "privilage" of a 1.3 diesel astra.

We pay for our private milage but I believe if the company pays all fuel the tax goes up quite a bit.

You pay the tax by having your tax code lowered, so your untaxable allowance is reduced. No perks tax is around 600 (you can earn 6000 before paying tax). My tax code is 238L (so I earn 2380 before paying tax on the rest of earnings).

[RatCav]

Ahh ... its the tax code bit I fail to understand. I appreciate how you work out the cost of the car depending on emissions etc. Its the fuel bit I cannot fathom. If get a fuel card I guess I would pay a portion of that back to HM via my wages, based on how much fuel I use. I am assuming that as a high mileage driver it would be quite a bit.

[nitromotor]

it also depends on your base, the mileage from home to work is usually classed as private so you will have to contribute to that portion of the car inc tax

[gregster]

I had a company car from work, but ditched it in favour of a van....

This decision was mainly because I was paying for something I never really used...the car was always full of work stuff and sooner than emptying it, I just used one of the trucks at home in the evenings/weekends...call me lazy but the boot was full of tools and the back seat normally full of spares...and if I was taking the dog the lot needed to come out...and then I had a house full of work stuff (cos the garage is full of junk )
The majority of my private mileage was driving to work (95%), the company changed to a different fuel supplier with higher pump prices (but that gave them a bigger discount) and my contribution was calculated on the average consuption of the car and the pump price...
So the leisurely 6th gear 65mph trundle to work was costed on the thrashing the car round service calls in London!

For the guys whom had it as there only car it was worth it...but for me sadly not...
The income tax extra I paid each month was about £60 and then my fuel contribution was about £100 a month....£160 a month for something I never really used...
The van is not as nice, but costs me nothing...I drive it to and from work and all the fuel mileage is business miles...and no horrid mileage returns to fill out each month...
Not allowed to use it for private use other than insignificant use (ie detour to shops on way home...occasional tip run etc)...

Miss having the ultra reliable brand new motor for going further afield...but I guess with saving £1920 a year I could stretch to hiring an Aston Martin for those odd few journeys to the other end of the country!

[RatCav]

Hmm ... considering I travel 1848 miles a month just to get to and from work I am going to be stung quite a bit, but considering that I am paying full pump prices at the moment surely the fuel card would be cheaper as I am only paying the tax on it.

[james'll fix it]

Fuel used to get to work depends where your "base" is. We are home/field based so miles to job are business miles.
We use a fuel card, and pay back any private milage, so no tax to pay on the fuel benefit.
If the co provide all fuel I think the extra tax is a set figure irrespective of how many private miles you do, I know a guy who drives back to poland a couple of times a month so he's quids in( or Zlotys in?).

[bigdazz]

i have to pay 500 a year towards my company van which is taken off my pay each month sucks ass

[RatCav]

I wish all I had to pay was £500 considering what I pay for fuel.

[bigdazz]

[RatCav]

Hmm ... will have to sit down with them and thrash out the options. Cheers for the input guys