Puff The Magic Wagon!

iTrader: (2)

Anyone out there please tell me what the likely company car tax is (in £ per month) on an STi8? 80% business mileage.

Does it make any difference if it has PPP?

Thanks

AndyBrew

Prepare yourself for a shock

Put it this way once my accountant had stopped laughing, he pressed a few buttons and for me it worked out at approx. £10K per annum

Kane

Forget it...you will owe the rax man big before you even start earning a wage m8...opt out and take the money and buy private.

RRH

do you have the option to take the money instead and do in personal contract hire? there are some stunning deals out there- well, at Palmers anyway

rotty

£291 per month for a 40% tax payer without private fuel

donutman

i think Which Car mag has a list at the back for emissons and tax levels.

Neil Smalley

Std STI

Tax Year to 5th April 2003/4 2004/5 2005/6
Percentage charge 35% 35% 35%
Benefit in kind - Car £8,685 £8,685 £8,685
Tax payable at 22% £1,911 £1,911 £1,911
Tax payable at 40% £3,474 £3,474 £3,474

If the company pays for private use of fuel, the following applies in addition: Tax Year to 5th April 2003/4
Percentage charge 35% of £14,400
Benefit in kind - Fuel £5,040
Tax payable at 22% £1,109
Tax payable at 40% £2,016



STI PPP

Tax Year to 5th April 2003/4 2004/5 2005/6
Percentage charge 35% 35% 35%
Benefit in kind - Car £9,384 £9,384 £9,384
Tax payable at 22% £2,064 £2,064 £2,064
Tax payable at 40% £3,753 £3,753 £3,753

If the company pays for private use of fuel, the following applies in addition: Tax Year to 5th April 2003/4
Percentage charge 35% of £14,400
Benefit in kind - Fuel £5,040
Tax payable at 22% £1,109
Tax payable at 40% £2,016

RRH

and thats why I mentioned the easy route

AndyBrew

May I add that figure took into account other issues to to do with god knows what LOL!

However I would say, I used some online tax calculators which made me think it would be a bargain, but it wasn't! I don't profess to understand it thats what I pay my accountant for, but it was far better for me to buy the car via a dividend than have the company run it.

tmo

take the cash, i did. and have a top rate of fuel i.e. pence per mile.

wrx03ppp

Hi

I own my own business and did some sums about this - there are some "tax calculators" on the internet too if you look. Based on 18000 - 30,000 business miles and paying own fuel, it was touch and go whether to buy a WRX privately or through the company. The higher emissions and list price of an STI would mean buying privately would probably be the most tax efficient.

Diablo

But don't forget that paying the tax on an STI8 can be very close in cost to buying the car and financing it yourself, if your employer is basically giving you the car on top of salary.

Assuming you pay 40%, £3,753 per annum in tax is £312 per month.

If all you have to do is add fuel, thats a cheap car, however you look at it.

Do the numbers:

Assume purchase price is £27,000.

Financed over 3 years at 7% per annum flat rate

Thats a total finance cost of say £5,670.

So outlay over 3 years is £32,670

OK, so you own it after three years. Assume its worth, what, 50% in three years? Thats £13,500. So your funding depreciation of £13,500 PLUS the finance costs of £5,670.

Thats £19,170 over three years or £532.50 per month.

Plus servicing at say, £500 per year (£1,500), tyres at say £750?, and insurance at what, £800 a year (£2,400). Oh, and chuck in road tax at £480 for the period.

Thats another £5,130 for the three years, or £142 per month.

So now we are at £674.50 per month to buy it yourself.

Assume the cash equivelant (if available) is £7,000 per annum, you are only netting £4,200 of that in you pocket at 40% tax which is £350 per month.

Or a net cost of £324 per month (£674 less £350) which is, using my example, more expensive than paying the tax on the car.

For hassle free motoring with negligable responsibility, I'd take the company car option every time.

D

carl

Due to the better emissions, a WRX+PPP works out substantially cheaper...

X2WRX

We do a personal contract hire deal as follows on the STi

£1700 deposit
35 payments of £399
Based on 10,000 miles per year
All prices include vat

Give me a call if this of interest

Ian
Stan Palmer Subaru
01228 525051
07831 684088

X2WRX

We also do a personal contract hire on the WRX as follows

£1700 deposit
23 payments of £299
Based on 10,000 miles a year
All prices include vat

Cheers

Ian

AndyBrew

Yes with this situation it obviously depends on whether you work for someone or have your own business as when you run your own business you have to buy the car through the business and then buy it again through personal taxation which is not good

vulnax999

iTrader: (7)

What does the personal contract offer, compared to company car schemes ( tax, servicing, repair costs ? )

Otherwise seems like a good deal ... esp. the WRX illustration!

Neil

AlanS

Tell me more about the personal contract offer. Can I get a WRX for the missus who doesn't run a business?

X2WRX

Full maintenance can be added for £32.90 a month.
This includes all road tax, servicing, tyres etc for the 2 years.

I feel it is the best way to fund a new WRX.
It fixes all you costs for the 2 year period, which is ideal if you are coming out of a company car scheme.

Deals as good as this don't come along to often, so grab them while you can.

Ian
Stan Palmer Subaru
01228 525051
07831 684088