POC

Morning,

Im in the process of organising a company car through work, im getting confused with exactly how much this will cost me in tax each month....

Currently the options I have are;

Nissan Primera (year old) 1.8
Lexus IS200 (year old) 2.0

What am i likley to be paying on these two cars? I am going to try to get a golf diesel, but that may not be an option. I really dont want to drive a primera, but I think it will be the cheaper option.

Thanks

Paul

NotoriousREV

IS200 has appaling CO2 levels so the tax is high and the Primera will be quicker and more economical.

There are loads of car tax calculators about, try www.automotive.co.uk

druddle

http://www.cashorcar.com/

TopBanana

The Lotus Elise works out as a cheap company car. Worth considering perhaps

Scooby Snacks

I had a Golf TDi (PD130) and recently gave it back cos I couldn't keep the scooby and the golf.
List price was £17500 and it fell into th lowest bracket for emmission which was 15%. However, being a diesel, it has 3% added to it.

Total tax liaibility for the full tax year was £3,150 (which as a 40% earner cost me £1260 for the year).

I know the IS200 is expensive as a friend has one - I think they're about 28% ish. The Primera will be cheaper, I would guess around the 24-25% mark.

POC

so the golf cost about £105 a month in tax?

image doctor

£100?

You must not be in the 40% tax then?

Bargain anyway, 100 squid for a month fixed, for a car!

ProperCharlie

if you think the lexus is bad, the scoob is safely in the maximum bracket for emmissions, meaning 35% of the list price taxable every year (works out at about £3,600 p.a. for a 40% payer on an STi7). Still, it's cheaper than having to put petrol in it.

Scooby Snacks

POC - that's what I worked it out to be, yes.

Image Doctor - car liability of £3,150 x 40% = £1260 (£105 a month).

SS.

Scooby Snacks

Extra post needed as now I've hit 700 posts!!

SiCotty

I've just worked out that from April an STi7 will cost about £5500 a year in hard cash for the tax man including the petrol card. A golf diesel with cost about £2500 a year with petrol card.

This includes Servicing, Petrol, Tyres and Insurance so makes an Sti7 look cheap. The golf is an absolute bargin though.

Si

POC

so, what im looking at for the lexus is apparently this:

£19k list price * 0.28 = £5320

22% of £5320 is about £1170 a year to pay, so about £97.53 per month.

Seems reasonable to me.

P

Diablo

POC - will you have to make a contribution from salary towards the car?

If so, the contribution comes off before tax.

Actual cost for a 40% taxpayer is therefore:

(List price when new) x (co2 tax banding percentage) x 40% less (contribution payable) x 40%

Caveat - if the contribution amount once deducted brings you below the 40% tax banding threshold the above formula isn't quite right.

D

POC

I dont think I have to make a contribution?

I shall speak to HR

Ta guys

Paul

NotoriousREV

ProperCharlie, the Scoob does have high emissions, however this is balanced by the fact that it goes well. The Lexus, OTOH, is slow, uneconomical and high on emmissions

Ru$$Rip

The MY03 has lower emmissions that the MY01/02 's hence lower car tax. It is however still too high when compared with the tdi's

carl

POC -- even if you're a basic rate taxpayer now, are you sure that knocking £5320 off your tax code won't put you into a higher rate? If your tax code starts off at 465L....
Without the company car you can earn £34,550 without paying higher rate tax
With the company car you can only earn £29,900 without paying higher rate tax

Remember that the value of the car for tax purposes is list price plus the value of any options or extras.

There's an interactive calculator at http://www.lvl.co.uk/features/tax_calculator.htm

You should also remember that if fuel is provided for private use (assumed unless you keep a record of business and private mileage) that you'll be liable for the fuel scale charge for this year, and for next year 28% (assuming that's the right tax band for the Lexus) of £14,400 extra taxable income, which will knock another 4000 off your tax code

http://news.bbc.co.uk/1/hi/business/2684439.stm