DMC12

I was thinking of opting out of our company car scheme and was just wondering how our rates compared to other companies.

If I take the car I get a lease amount of £350 per month which gets me an ~£18k car (over 4 years and 15k miles per year). Any business miles I do I can claim at 9p per mile.

If I take the money I get £375 per month (before tax) and could claim 40p per mile for the first 10k miles (i.e. £4k tax free)

Would anyone mind telling me what lease rates and mileage rates they get for company cars compared to taking a car allowance?

Many thanks.

Steve

Marc W

Publishing company in SE.

I get £500 / month allowance and 20p per mile on business use.

I'm now running a 51 reg Golf tdi 130 doing 20,000 miles / year.

Running such a sensible (capable but dull) car means I'm quids in taking the allowance.

Cheers

Marc

rotty

I used to get £350 on lease though we get good rates , WRX was £433

opt out I get £462 per month plus 11.5p per mile and the the tax rebate on the remainder of the 40/25 p per mile

[Edited by rotty - 1/21/2004 11:40:53 PM]

alibi

My allowance is currently £300pm lease cost & 9p mile business use or opting out would give me £400pm before tax and 20p mile business use.

James Neill

iTrader: (1)

You can also claim back the tax on the business portion of all costs associated with running your own car for work. When I did it I kept all receipts and claimed back tax at 40% of the cost associated with work. You can claim back tax on almost everything

Petrol
Servicing & Tires
Insurance
Interest Paid (on any loan you've taken out)
Depreciation (max is £3000 I think)

So the total tax claim was

(business miles / total miles) * (running costs - company payments) * tax rate

In my case using this exact method came out better than using the simple method. See here

http://www.inlandrevenue.gov.uk/pdfs/ir125.htm

If you do a lot of business miles it can work out at a fair chunk of money (ie, over £1000)


[Edited by James Neill - 1/22/2004 7:07:40 AM]

pbee

i get a lease amount of £375 which I have just ordered a A3 1.6 fsi sport with.

I could of opted out and got £410 before tax. With this sensible car I was better off the company car route. If you choose a higher emission car then it really does affect the sums so it is down to the type of car you choose. If I could run an older car then you may actually profit out of it, but My company had a limit of 5 years old for the car.

I also get either a fully exsepnsed fuel card or I can opt out and get £150 a month, then claim petrol at 12p per mile.

Scumbag

I think you'll find the "exact" method has been phased out...real bummer for me as I was absolutely quids in doing it that way (high running costs, very high % of business miles). The "easy" method makes me much less.

I get £480 pm car allowance (taxed at 40%)
As I live a long way from work (80ish miles) mileage to and from work doesnt count as business miles, so rather than take the pence per mile option (14p - tight gits),which I couldnt claim for a trip to the office, I have a fuel card for which I have to contribute £50 per month. In addition I am taxed on the benefit in kind the fuel gets me (40% on my annual petrol bill), but this is for all petrol that I use. My contribution is offset against the tax on the petrol.
I then claim back the IR allowance for the business mileage I do (now calculated using the easy method)

I wont even go into the differences between what the company is willing to accept as "business" mileage compared to what the Revenue do!!!

I dont lease...was lucky enough to buy outright, and when you take into account the tax I would have paid on a company car (2.5litre BMW/Audi), I am happy running the Legacy B4, and having about a grand in the bank on top

SB