Brewstaa

anybody out there know how much it costs to run there company car? As I have just had the accountant tell me it will cost me nigh-on £20,000 a year to have my scooby-doo as a company car, can this be correct????

douglasb

20K seems way over the top.

The amount of tax you pay depends on the purchase price of the car, CO2 emissions, whether or not you receive free fuel, and what your tax rate is. Even using worst case figures I can't get the figure to anything like that.

Assuming the car cost 25K, CO2 emissions are high, you get free fuel and pay tax at 40%, the figures work out as follows-

Taxable benefit of the car is £25000 x 35% which is £8750. Taxable benefit of the fuel is £14400 * 35% which is £5040. So, the total taxable benefit is £13790. At 40% tax, this makes your tax bill £5516.

Doug

Brewstaa

umh?

Thanks Doug thats what I thought, he seems to of included the actual benefit in kind in with the totals !!! And also included 4,000 a year for the 40p/mile I could claim if I ran it myself.

Diablo

Mate, get another accountant

Or get him to explain the figures a bit better..

ProperCharlie

I expect to pay about 4k in tax (that's not the tax on 4k, that's as in 4k tax bill) on my "company" STi7. It seems like a lot, but when you take into consideration the cost of tyres, petrol, servicing and depreciation, it's not as bad as it seems. Sure, I could run a BMW 320 on personal contract purchase and have money left in my pocket, but at the moment I don't want to.