Company Car question
#1
Company Car question
Ok, I'm now eligible for a company car or a cash alternative.
To get a car that I want I will probably have to add a personal contribution each month.
If I add £200 (deducted from my salary) how does this work?
E.g. If Salary is £5k/month basic do I get taxed on £5k then deduct £200 / month from my take home?
Does the £200 / month come off my basic before tax is applied?
How much does this £200 contribution actually cost me?
Additionally, I know that I am also liable for tax on the car, from the calculators the cost of a 335d Beemer is similar to a 335 petrol - am I doing this right? thought the petrol would be more?.
Cheers
To get a car that I want I will probably have to add a personal contribution each month.
If I add £200 (deducted from my salary) how does this work?
E.g. If Salary is £5k/month basic do I get taxed on £5k then deduct £200 / month from my take home?
Does the £200 / month come off my basic before tax is applied?
How much does this £200 contribution actually cost me?
Additionally, I know that I am also liable for tax on the car, from the calculators the cost of a 335d Beemer is similar to a 335 petrol - am I doing this right? thought the petrol would be more?.
Cheers
#2
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I used the calculator on this website Company Car Driver. It allows you to enter your contributions and see how it affects your tax.
Steve
Steve
#4
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Generally any personal contribution from you towards the cost will be deducted from your gross salary before tax, so effectively the cost to you is the amount less the tax on that amount.
So your £200 contribution will only cost you (assuming 40% tax) £120.
HTH
So your £200 contribution will only cost you (assuming 40% tax) £120.
HTH
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#8
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Just to clarify.
I will be making a monthly contribution to my co. car. This contribution is taken off the value of the car so I don't pay benefit in kind on it. Does it also come off my salary before income tax is paid on it in the same way pension contributions are made?
I can see me having to get an accountant!
Steve
I will be making a monthly contribution to my co. car. This contribution is taken off the value of the car so I don't pay benefit in kind on it. Does it also come off my salary before income tax is paid on it in the same way pension contributions are made?
I can see me having to get an accountant!
Steve
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