Hi guys, Starting a new job at the start of March and I will be receiving a diesel Citreon or Peugeot estate. I'm presuming this'll be a diesel due to the mileage I'll be cover. I'll be provided with an all star fuel card which I'll be able to fill up with, any private mileage I use will be deducted from my pay, but I don't anticipate this being hardly anything as I'll use the 250 when I'm not working. Company car tax is something I am completely in the dark about, anyone got a rough idea of how much tax I'll pay on the car? Cheers
My company car costs 14p per mile for private use .. and the amount you are taxed depends on the value of the car , mine is an astra eco diesel and basically they say its worth £3000 per year . which you will pay tax on at either 20% or 40% depending on what tax bracket you are in just as if it was earnings. so say you are still in the 20% tax bracket you would pay £600 tax on a car worth £3000 per year . If you get paid weekly that would be £11.50 per week
HMRC says "we work out the amount by the cars cost, co2 emissions, fuel type, number of days the car was available to you, payments you make for the private use of the car" My diesel Vauxhall Mokka benefit is worth £3889...
It's quite a complex field and they will ultimately affect your tax code. Tax willbe based on your tax band either 20 or 40%, the P11D value of the car (which is the benefit in kind or what the car would cost if you bought it yourself) and the emissions of the car. The lower the emissions the lower the tax. I had a fuel card which I could use for both work and personal fuel but the tax on it was ridiculous. You'd best off calculating if you'd use as much fuel as the card will cost you in tax. If you use less then stay away as they are a tax black hole, not to mention your wallet will be fat with fuel receipts. That said it's great as your driving style goes out the window and you grow lead feet.... I would speak to your HR or fleet administrator who can tell you about the value of the car and the Benefit in kind values.
I specced and bought my gfs dad company car 265FF cup chassis, recaros. That was his budget eaten up! Lol
