J4CKO

iTrader: (1)

I am currently contracting, I like the job, the people and the office is moving to 7 miles from where I live. My contract ends in October.

Obviously seeing as they like what I do they want me to go permanent, I turned the first offer down but I have a meeting on Monday to discuss a revised offer which fits in with what I want, so I might take it if it is what I asked for.

then, begs the question, do I take the car allowance ?

I don't do much mileage (or wont do) but my car is nearing 100k and needs some suspension work, doesn't have air-con and does 28 mpg.

I will be earning over the 40% band but am confused as to where I fit in with the taxation, do I pay the full whack of tax at 40% even if I just go over the threshold ?

Quite fancy a new Mondeo 2.0 tdci Zetec Estate and then buy something classic/fun/fast for weekends rather than doing the usual thing of trying to combine day to day vehicle with fun vehicle, it doesnt really work.

So is it still worth taking the company car, bear in mind as otherwise my missus will treat the allowance as additional income that will never be used for buying a car and I will be stuck with the aging Saab for the next 100 years.

what would scooby do

You only pay 40% tax on the bit over the threshold

company car or car allowance:

Company Car Tax - The AA