 | Home > Off Topic > Company car/van tax with for work |
 
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| Projectblue Member Since: 22 Nov 2011 Location: Devon Posts: 1096  
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Well it's massively variable depending on the vehicle. Taxation is based on BIK value. New project and it's green: www.projectoverland.info
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4th Nov 2016 10:31pm |
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| DaftOldGit Member Since: 20 Sep 2015 Location: London Posts: 52 
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if you buy or lease a car then its your property, so you're not taxed on it. You're only taxed on your company car because its a "benefit in kind" from your employer. If you use your own car for work and your employer gives you a mileage allowance then theres a set acceptable limit, if they pay you above that limit (you'll have to google it to find out what) then you'll still be taxed on the surplus.
If you stay with the company car option, the tax can be reduced by choosing a low emission car and/or by choosing a commercial vehicle instead of a car. |
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4th Nov 2016 11:17pm |
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| Andy80 Member Since: 31 May 2013 Location: Essex Posts: 490 
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Hi Daft,
Thanks for your reply and confirming what I had in my head already!! The only bit I was not sure was the taxable part on the acceptable limit. Thankyou again and some questions for Monday at work! Thanks Andy Working towards Carry on camping! |
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5th Nov 2016 6:54am |
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| JJ Member Since: 18 May 2009 Location: Winchester Posts: 932 
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Hi Andy
If you lease a car or van personally or buy a car or van then your employer can pay you a mileage allowance of up to 45p per mile for the 1st 10000 miles then 25p per mile after that. If you google AMAP you will find the info. AMAP is tax exempt at those rates. At this rate it is supposed to cover all your costs, fuel, servicing insurance etc. If your employer pays you more or less then there are tax implications for either paying tax or claiming relief. If the company provide you with a van instead of a car then Bik is a flat rate rather than CO2/ p11d based . The current rate is £3,170 divided by your tax band.So a 20% tax payer pays £634 per year currently. HR064 Hampshire and Berkshire 4x4 Response |
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5th Nov 2016 7:54am |
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| Andy80 Member Since: 31 May 2013 Location: Essex Posts: 490
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Thanks JJ,
I have just requested a couple of lease quotes as I'm doing roughly 40,000 per annum, so want a few quotes to hand to work costs etc. Thanks Andy Working towards Carry on camping! |
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5th Nov 2016 8:05am |
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| Retroanaconda Member Since: 04 Jan 2012 Location: Scotland Posts: 2679 
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I use my car for work and the above is the arrangement - 45p/mile then 25p/mile after the first 10k. This avoids the need for me to pay any tax.
Even at 25p/mile it more than covers the cost of running the vehicle so suits me fine. |
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5th Nov 2016 8:32am |
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| gabe3105 Member Since: 25 May 2015 Location: Grimsby Posts: 237
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^^^^ that suggests the company will be paying the lease costs, in which case you will get taxed on it as a company car as currently?
You basically have a few options: 1. Fully expensed car in which case you will pay tax, the higher the list price of the car and its CO2 the more tax you will pay. If it qualifies as a commercial vehicle then the tax should be pretty low as it is taxed on a fixed amount. 2. Company provided car but you pay all fuel. Tax will be less as you are only taxed on a car benefit and not a fuel benefit too. You should then be able to claim mileage for business trips at approved rates depending on fuel and engine size, currently about 12p per business mile. At 40k miles per year this will probably not be sensible. 3. You buy or lease your car privately and bear all costs personally. No tax for you to pay and you can claim approved mileage rates as per JJ post, plus additional 5p per mile for passenger. In cases where you opt out of a company car scheme it is normal for your employer to pay you a "car allowance" to reimburse you for them not having to provide a car and to cover your costs in buying/leasing your own. This is just a monthly lump sum paid on top of your salary and is taxed as if it was salary. Hope that helps |
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5th Nov 2016 8:40am |
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| gabe3105 Member Since: 25 May 2015 Location: Grimsby Posts: 237
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My use of ^^^ was not directed at your post Retro!
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5th Nov 2016 8:41am |
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