Wheelman

I have a chance to join the company car scheme this month (can only join each year in September. Currently I get £6250 per year car allowance but from 1.10.2003 this drops to £4875 and 1.10.2004 to £3500 (we have been taken over and contracts are being aligned).

The scheme means I get the car for 4 years and don't pay road fund tax, insurance, servicing etc. I can choose from a fairly extensive list of cars including options to receive £100 back from the scheme each month or contribute upto £250 each month for a better or worse car than my level allows. Needless to say the best deals are on Ford, Vauxhall, Volkswagen and Renault.

I currently get paid 11.85p per mile on top of my allowance using my MY94 Scooby which is completely paid for but has now done 76k.

By my calculations as long as the Scooby keeps going without major surgery it is better not to opt in for at least another 12 months.

Any thoughts and any recommendations for websites to get all the Co2 emissions and tax figures calculated?

Wheelman

No one got any useful tips then?

ProperCharlie

most of the vehicle manufacturer's websites have a calculator that works out how much tax you pay on thiers cars.

CarolineA

Hope this helps...

Since April 2002, the income tax charge on a company car is based on a percentage of the car's list price graduated according to the level of the car's CO2 emissions (measured in grams per kilometre (g/km)). The charge will build up from 15 per cent of the car's price to a maximum of 35 per cent * in 1 per cent steps for every 5g/km CO2 above a specified level. Diesel cars will pay a supplement of 3 per cent of the car's price compared to petrol cars (up to a maximum of 35 per cent) to take account of their higher emission of particles and pollutants that have adverse impacts on local air quality.

Useful websites for more information
http://www.inlandrevenue.gov.uk/cars/company_cars.htm - contains links to most websites on this topic and links to useful publications
http://www.inlandrevenue.gov.uk/pdfs/ir172.htm- an excellent guide to the current company car taxation rules and the changes that will be made from 6 April 2002
http://www.vcacarfueldata.org.uk/ - this is a database of all the new car fuel consumption and emissions figures

Boost II

iTrader: (1)

If you get an allowance don't they just add it on to your salary such that income tax is paid instead of CO2 related company car tax

ProperCharlie

yeah but you can get business mileage paid at the Inland Revenue agreed rate, tax free.

stevem2k

Assuming you'll do more than 14k next year, factor the 90k service bill into the equation too ....


Steve

brickboy

Fleet News has a handy tax calculator for pretty much every variant / make of car.

Tip: if you're going for a diesel, go for one of the very latest (like the brand new VAG PD motor in the Audi A3 etc) as the tax rates are stupidly low.

Andy486

I'd take the car if the cash alternative was less than £350/month. Don't know why really, just always been my rule.

Wheelman

Thanks.