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Post by Tim on Jul 31, 2018 11:07:19 GMT
Can anyone recommend a site where I can input details of company car costs, salary and tax to work out if its beneficial to transfer the car to private and take an allowance as well?
It's not for me, sadly. |
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Post by ChrisM on Jul 31, 2018 12:34:22 GMT
Sorry, never had a job that came with a car... never likely to, either :-(
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Post by Martin on Jul 31, 2018 12:42:12 GMT
I’ve never found one that easier/better than a couple of calculations on a spreadsheet, as they will only tell you what the tax will be and you’ll need to work out running costs for your own car anyway.
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Post by Tim on Jul 31, 2018 13:04:19 GMT
It's for a colleague who currently has a company car, about 10 months into a 3 year lease, and he's just had a revised tax code on the back of me submitting P11Ds.
He wants to know if he should take the car on personally and accept the monthly allowance in addition to his salary rather than specifically putting it against the car.
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Post by Deleted on Jul 31, 2018 13:49:53 GMT
The HMRC online calculator is a quick way of at least getting the taxable equiv of the car in question.
The increase in company car tax has doubled for me in 3 years with the same car!
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Post by johnc on Jul 31, 2018 15:04:55 GMT
I used to have a programme that calculated which was most beneficial but it is largely academic these days: if he uses the car a lot for personal use and little for business it might just be worth having a company vehicle, otherwise I doubt it unless it is a hybrid/small petrol powered vehicle.
I just do my calculations now on a piece of paper. |
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Post by Tim on Jul 31, 2018 15:52:32 GMT
It's an A6 2.0TDI Avant.
I think most of the mileage is personal.
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Post by Martin on Jul 31, 2018 16:11:24 GMT
It's an A6 2.0TDI Avant. I think most of the mileage is personal. I expect it would be cheaper to run himself providing the cash allowance is reasonable. |
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Post by Alex on Jul 31, 2018 16:35:43 GMT
It's an A6 2.0TDI Avant. I think most of the mileage is personal. I expect it would be cheaper to run himself providing the cash allowance is reasonable. I’d probably agree, especially as Company car tax is only going one way and diesel cars that size are being taxed to piss take levels these days. |
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Post by Tim on Aug 1, 2018 11:01:11 GMT
I think his allowance is £400.
He'll have to find out the practicalities of novating the agreement across as well, it appears business agreements are usually quite a lot cheaper than personal ones so not sure how that would work out for an existing contract.
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Post by johnc on Aug 1, 2018 11:10:00 GMT
Business rates just appear cheaper because they are always quoted ex VAT but once you add the 20% on, there is usually no difference
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Post by Deleted on Aug 2, 2018 9:16:19 GMT
It came as a shock to find my people carrier has doubled in company car tax over the 3 years I've had it!
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Post by johnc on Aug 2, 2018 9:35:42 GMT
With the relentless reduction in CO2 emissions and the increases in Benefit in Kind percentages I find that most people are worse off with a company car. The employers of essential car users (sales people, engineers etc) usually have to pay some kind of salary enhancement to compensate for the ever increasing costs of having a car. Many companies want to control their fleets for safety, maintenance, reliability and reputational reasons so they have little choice in trying to help the essential car users.
A small number of people who receive small perk cars still do it because it saves them the hassle and the cost isn't too burdensome but those with more expensive perk cars have mostly given them up except at the very top where the cost no longer matters as much - when you are on £250K, a company 911 might cost £1500 in tax a month which probably isn't that far away from the cost of leasing one personally and there are no running expenses or tyres to pay for. |
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