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Author Company Car Tax
chrisritch
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Registered: 2nd Sep 08
Location: Northants Drives: Kuga
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14th Mar 17 at 14:46   View User's Profile U2U Member Reply With Quote

What exactly is the crack with it? My new role is field sales based so I'll get a company motor, What should I expect to pay exactly? Will I get taxed even if I don't use it for any personal mileage?

The company charge 10p per mile for personal usage so will I have to pay this rate on top of any tax HMRC decide to butt fuck me for?
Ian
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Registered: 28th Aug 99
Location: Liverpool
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14th Mar 17 at 15:11   View Garage View User's Profile U2U Member Reply With Quote

quote:
Originally posted by chrisritch
Will I get taxed even if I don't use it for any personal mileage?



Yes, the BIK figure is based on the car not your actual usage.

quote:
Originally posted by chrisritch
The company charge 10p per mile for personal usage so will I have to pay this rate on top of any tax HMRC decide to butt fuck me for?


Depends whether the company plan on paying the BIK for you using all those 10ps or whether it will appear on your pay slip as a deduction, depends how they want to calculate it.

I would think given BIK is a fixed amount and your mileage will vary they may well plan on you paying both.


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VegasPhil
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Registered: 16th Jan 05
Location: Fareham, Hants Drives: Octavia VRS
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14th Mar 17 at 15:12   View Garage View User's Profile U2U Member Reply With Quote

10p per mile for personal usage? Is there a car allowance option?


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chrisritch
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Registered: 2nd Sep 08
Location: Northants Drives: Kuga
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14th Mar 17 at 15:20   View User's Profile U2U Member Reply With Quote

quote:
Originally posted by VegasPhil
10p per mile for personal usage? Is there a car allowance option?



No idea to be honest, Start Monday and have a 3 week induction to go through so I'm sure these things will crop up. I just didn't want to go in completely blind
Mike
Organiser: North West and North Wales
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Registered: 20th May 06
Location: nr. Skipton, North Yorkshire
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14th Mar 17 at 15:34   View Garage View User's Profile U2U Member Reply With Quote

In terms of what you'll pay, do you know what car you'll be getting? Most manufacturers have a BIK calculator on their websites, it all depends on the P11D value (list price) and the emissions so without knowing the model you're getting you can only guess at what it'll actually cost.

Interested to know how the personal mileage charge works, is that based on honesty or tracking?

[Edited on 14-03-2017 by Mike]
Kyle T
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Registered: 11th Sep 04
Location: Selby, North Yorkshire
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14th Mar 17 at 16:34   View Garage View User's Profile U2U Member Reply With Quote

The 10p per mile thing seems odd. A 35mpg car at current fuel prices is about 15p per mile - so a 10p per mile will represent a fairly chunky addition to your running costs.

BIK has already been covered by others, it's car specific.

I'm self employed, so have different options available to you. For me it was a case of:

a) Get a company car, pay BIK and only claim 12p/mile for business mileage

b) Get a personal car, pay the lease/finance/cash payments myself and get 45p/mile up to 10k miles/year and 12p/mile after that.

I made a spreadsheet, put a load of different cars in that I was considering - and for anything vaguely sporty and non-hybrid, leasing a personal car and claiming 45p/mile worked out better.

The mileage I do covers the lease cost AND business fuel bills each month on a Leon Cupra 290. If I had to pay my (own) business 10p/mile for any personal mileage on option a) - then it would be even less attractive!

Going for hybrids usually results in the lowest BIK costs - even if realistically they give worse fuel economy over the year.


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whitter45
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Registered: 15th Nov 02
Location: Norton
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14th Mar 17 at 17:16   View User's Profile U2U Member Reply With Quote

you shouldn't have a personal mileage rate

we get pence per mile based on Manufacturers mpg - we then claim this rate for business miles

i.e the more economical you driv eon business the better chance you have of covering % of your personal use

BIK is different for us as we are on ECO scheme

Basically i pay BIK but to my company not HMRC

So taxman does not affect my tax code
chrisritch
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Registered: 2nd Sep 08
Location: Northants Drives: Kuga
User status: Offline
14th Mar 17 at 17:25   View User's Profile U2U Member Reply With Quote

It'll be a Ford Kuga, I'm assuming it'll be the EcoBoost Petrol but not 100% sure

The 10p per mile I think is payment back as I'll have a fuel card so wont be paying my own diesel costs.

And in regards to milage tracking, I assume like most company cars it will have some form of tracking system but on my CRM it will show customers I have visited, where they are etc so they could go back and look and work out what the mileage should be compared to what it actually is
taylorboosh
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Registered: 3rd Apr 07
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16th Mar 17 at 19:35   View User's Profile U2U Member Reply With Quote

Basicly your just paying your own fuel - which is fair
DaveyLC
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Registered: 8th Oct 08
Location: Berkshire
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17th Mar 17 at 09:17   View User's Profile U2U Member Reply With Quote

quote:
Originally posted by chrisritch
What exactly is the crack with it?quote]

You're basically paying tax on the 'benefit' (i.e. its value to you) and then on-top of that how 'polluting' the car is.

Get carried away with the car and spec and you'll be taking a big chunk out of your salary, personally I'd get the best 'cheap' car e.g. Skoda Yeti etc.
whitter45
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Registered: 15th Nov 02
Location: Norton
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17th Mar 17 at 10:42   View User's Profile U2U Member Reply With Quote

disagree DaveyLC

My car costs 210/month BIK to my company which is fully maintained, tax, insurance, etc

By going for something like you suggested I would save may be 100 a month max

Personally sooner be in a car I want to drive - because the theory goes if you have a company car it will be based on job need and large miles - why not have something you like/want to drive

although revised bands when i renew my car may get me thinking otherwise as I think my current BIK % would jump up 10% based on new figures and we also get an additional 30 increase because of VED for cars over 40K list price
Ian
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Registered: 28th Aug 99
Location: Liverpool
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17th Mar 17 at 12:18   View Garage View User's Profile U2U Member Reply With Quote

Plenty of examples of nice cars for 200pm, I wouldn't stress over the extra for something nice.


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DaveyLC
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Registered: 8th Oct 08
Location: Berkshire
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17th Mar 17 at 13:00   View User's Profile U2U Member Reply With Quote

quote:
Originally posted by whitter45
disagree DaveyLC




This is why I added 'personally' to the beginning of my statement...

If I was a portfolio-cunt-finance-whore I'd go for the 7 series and bump the credit card limit so I could still eat out..
Ian
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Registered: 28th Aug 99
Location: Liverpool
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17th Mar 17 at 19:14   View Garage View User's Profile U2U Member Reply With Quote

Keep your pants on - opinion or not there are still nice cars for sensible money.

Agree - don't overlook it get something flash, then regret paying more than if you were running it privately.


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Andrew
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Registered: 5th May 04
Location: Skoda Octavia Estate, Ford Puma
User status: Offline
17th Mar 17 at 22:13   View User's Profile U2U Member Reply With Quote

I have no idea how this all works as it was all sorted out by one of the directors.

I get paid 10p a mile for business miles and insured 10k business miles and 10k personal miles.

I'm in a Skoda Octavia
Bart
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Registered: 19th Aug 02
Location: Midsomer Norton, Bristol Avon
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29th Mar 17 at 17:36   View User's Profile U2U Member Reply With Quote

quote:
Originally posted by Mike
it all depends on the P11D value (list price) and the emissions


This!
What this means is you could drive around in a 15 year old banger, originally worth 35k and your tax will be calculated based on the 35k value and not the present day value. Make sure your car is relatively new or you'll be taxed a good sum of money on an older car with rubbish emissions (most likely!).

The tax man doesn't allow you to use company fuel for free, it's seen as a benefit, so you'll either need a different tax band if you plan to use it personally or be charged by your company.
Depends how much personal use you plan, if it's a little you'd want PAYG fees, if it's a lot then you'd probably be better off on the higher tax band.

[Edited on 29-03-2017 by Bart]
ARD1
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Registered: 4th May 04
Location: Notts
User status: Offline
6th Apr 17 at 19:04   View User's Profile U2U Member Reply With Quote

P11d has been covered

I opt out of the personal fuel tax flat rate and pay back 11p per mile per month as I never get anywhere near the flat rate tax amount of fuel.

So the company fuel card pays for all the fuel and I pay back what I use. Really easy and is based on an honesty based mileage report each month. Not a tracker.

Depending on your tax rate and the car you can work out what works best for you. Sites like parkers show the costs in the review for each car

 
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