rb5_336

the search function seems to be down tonight. Does anyone have good advice or good links to be ably to work out the best choice here. Car bonus is in the region of £320. I have done some research and the tax liability on a vw golf diesel seems to be the same on what i would pay on tax if i took the money. I'm sure there is more to it though, hence would appreciate some advice

cheers
sean

darren...

All depends on whether they pay for fuel etc but £320 isn't a big car allowance - at that level you'd probably be best sticking with the car... Lot of factors come into play including what mileage rate they'll pay, how many miles you do a year etc but assuming not a lot of miles stick with the car...

rb5_336

yeah agreed it's not a lot, i used to get about £8k about 5 years ago Won't be many miles

darren...

One of the lesser known rules is if you have a car allowance and the company pay you less than 40p a mile you can claim tax relief on the difference but if you don't do many miles and you already have a tax efficient car then £320 is not going to get you a lot - sorry

rb5_336

it looks like i can get a decent golf diesel for that money via my company's leasing deal, seems a popular choice in this company

7 Foot

My previous company agreed to pay me £300 extra per month and 40p per mile (for the 1st 10k, 25p thereafter).

With this I got a loan, bought a my MY00 and the car is mine to keep.

Lum

Pro tip: a luxury pickup such as the Misubishi Ranger counts as a van, so if you have private use, your company car tax is based on a fixed sum of £500 rather than the list price of your car
Allegedly, I've not actually tried it.

Account deleted by request

this ends in 2007 though

chop

davyboy

Basic take home salary £2000 per month.

Including car money £2200 per month

Company car tax £1900 per month

Isn't that how it works?

dba

stick with the car at that level,its only enough to run a very small car

Rioja

When you say 'car bonus', are you refering to a car allowance where an amount is paid into your salary and taxed at source? In which case you purchase a car of your choice (possibly subject to some restrictions if a fuel card is being provided) and run it as a personnal / company car. You do not pay any additional tax as the car is yours, and a private vehicle on business use.

If you get a fuel card this is taxed as a 'benefit-in-kind' and the amount you spend on fuel will apear on your P11D, hence you end up paying 40p in the pound for fuel; if they allow it for private use that is.

I have this arrangement at the moment, and it works really well as I do alot more personnal miles than business.