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Company cars



Midfield Minton

New member
Dec 18, 2013
266
Hi guys
Does anyone else have a company car and on average how much do they pay a month,this includes to use as I like and with a fuel card,I haven't got my list yet but I'm thinking of a new focus or mondeo
 




Garage_Doors

Originally the Swankers
Jun 28, 2008
11,789
Brighton
Hi guys
Does anyone else have a company car and on average how much do they pay a month,this includes to use as I like and with a fuel card,I haven't got my list yet but I'm thinking of a new focus or mondeo

Do you mean how much you pay the employer for personal use or how much you get taxed as a Benifit?

It's been a few years for me but then I was taxed around £200-250, a month.
Then had my salary re adjusted ie, have a 4k increase to cover the loss of car but still able to claim mileage at 40p a mile.

All this easily covered the hp and running costs and best of all, after 3 years once it was paid for you get to keep it
Each time I gave it to the wife and just bought a new one each time px the wife's old one each time.
 


Midfield Minton

New member
Dec 18, 2013
266
I thought about that option but the amount I would travel and the fact I have 7 jobs too survey a day means the fuel costs would be mad,plus my cars on its ways out and the other half doesn't drive so won't be needing two cars
 


Westdene Seagull

aka Cap'n Carl Firecrotch
NSC Patreon
Oct 27, 2003
20,938
The arse end of Hangleton
You would be much better off taking a car allowance.
 




Midfield Minton

New member
Dec 18, 2013
266
Do you mean how much you pay the employer for personal use or how much you get taxed as a Benifit?

It's been a few years for me but then I was taxed around £200-250, a month.
Then had my salary re adjusted ie, have a 4k increase to cover the loss of car but still able to claim mileage at 40p a mile.

All this easily covered the hp and running costs and best of all, after 3 years once it was paid for you get to keep it
Each time I gave it to the wife and just bought a new one each time px the wife's old one each time.

How much tax,I'm not self employed
 




Springal

Well-known member
Feb 12, 2005
23,711
GOSBTS
That's not always strictly true. It can vary wildly from one person to the next as there is so many different factors at play.

How so out of interest? Our place ONLY pays car allowance, but just wondered what factors I should look out for.
 




Beezer

Member
Feb 27, 2013
53
Also company's don't always run the same schemes,I have been with a company who,s car scheme have been tax free ,and you just pay a monthly running cost ,that is fixed.overall I prefer a company car ,as most are covered for servicing and problems,
 


Butch Willykins

Well-known member
Jun 17, 2011
2,532
Shoreham-by-Sea
How so out of interest? Our place ONLY pays car allowance, but just wondered what factors I should look out for.

I guess the absolute simplest way to look at it is a Company Car is a tool provided by your employer, if an employee uses the vehicle for personal reasons (hard to argue against these days) it then becomes a taxable benefit. The car is technically 'owned' by the employer.

On the other hand with a car allowance all the risk is put onto the employee. The employee has to fund the vehicle including finance payments and maintenance costs. There is also the risk if made redundant (or even a changing employer to move to a better job) that the employee is stuck with a 2-3 year lease and may struggle to pay it.

Sometimes the numbers do stack up and cancel out the risk. The 40p per mile rate can be quite lucrative! However it's very much a personal thing and there not one size fits all approach. I've tried both options over the years and for me, right now, the company car option seems to work better.

All I would say is whatever option is chosen it's generally better to go for a low C02 emission vehicle with good fuel economy!
 


Bad Ash

Unregistered User
Jul 18, 2003
1,900
Housewares
The emissions of the car play a huge factor, get a really green car and you'll be taxed much less. This effects the amount you are taxed on the car and taxed on the fuel.

I opted out of the fuel card benefit as I would need to do over 10k personal miles to make it worth while.
 




TonyW

New member
Feb 11, 2004
2,525
Can't speak for other companies, but my Wife gets a car allowance of £5500 a year, so that works out at £458.33 per month.

She tops it up by £41 a month from her salary and drives a brand new VW Golf R.

The company pay for all the servicing, the road tax and the insurance.

If she ever drives for work (she never actually has yet) they pay £0.26 per mile I think.

Every 3 years she can have another shiny new one, or buy it.

Pretty good.

She pays about £200 a month extra in tax for the perk though.

Still a great deal.
 
Last edited:


Midfield Minton

New member
Dec 18, 2013
266
Can't speak for other companies, but my Wife gets a car allowance of £5500 a year, so that works out at £458.33 per month.

She tops it up by £41 a month from her salary and drives a brand new VW Golf R.

The company pay for all the servicing, the road tax and the insurance.

If she ever drives for work (she never actually has yet) they pay £0.26 per mile I think.

Every 3 years she can have another shiny new one, or buy it.

Pretty good.

She pays about £200 a month extra in tax for the perk though.


Still a great deal.

I think theo other person at my company pays £157 a month for his company car but that's a skoda yeti and I'm the better side of 50 so won't be one of them yet
 






May 26, 2004
106
Hassocks
Can't speak for other companies, but my Wife gets a car allowance of £5500 a year, so that works out at £458.33 per month.

She tops it up by £41 a month from her salary and drives a brand new VW Golf R.

The company pay for all the servicing, the road tax and the insurance.

If she ever drives for work (she never actually has yet) they pay £0.26 per mile I think.

Every 3 years she can have another shiny new one, or buy it.

Pretty good.

She pays about £200 a month extra in tax for the perk though.

Still a great deal.

So, her tax and top-up is £3000 p.a. And her company spends £5500 on the lease plus servicing, road tax, insurance so assume £6500 - the car is costing (in total) £9500 p.a!

If your wife took the £6500 as salary, she'd lose (I presume) 40%, so she would have £3900 car benefit and £3000 tax and top up saving. £6900 buys a lot of car on a personal lease plan plus insurance.

My numbers are similar, but I bought a 3 year old passat for £10k, it's cost no more than £1000 p.a. In servicing, insurance, tyres, tax etc so I'm quids in. I do 20,000 miles a year, 8000 are business. My company pays me 15p a mile for business use, or I can take a pool car for long journeys. There is a further tax benefit of £2k because my mileage rate is low!
 




Willy Dangle

New member
Aug 31, 2011
3,551
Hi guys
Does anyone else have a company car and on average how much do they pay a month,this includes to use as I like and with a fuel card,I haven't got my list yet but I'm thinking of a new focus or mondeo

£160 mid range Insignia
 


TonyW

New member
Feb 11, 2004
2,525
So, her tax and top-up is £3000 p.a. And her company spends £5500 on the lease plus servicing, road tax, insurance so assume £6500 - the car is costing (in total) £9500 p.a!

If your wife took the £6500 as salary, she'd lose (I presume) 40%, so she would have £3900 car benefit and £3000 tax and top up saving. £6900 buys a lot of car on a personal lease plan plus insurance.

My numbers are similar, but I bought a 3 year old passat for £10k, it's cost no more than £1000 p.a. In servicing, insurance, tyres, tax etc so I'm quids in. I do 20,000 miles a year, 8000 are business. My company pays me 15p a mile for business use, or I can take a pool car for long journeys. There is a further tax benefit of £2k because my mileage rate is low!

It wouldn't get you a £31,000 golf R though, including insurance.
 






Superphil

Dismember
Jul 7, 2003
25,401
In a pile of football shirts
I worked it out several years ago and found that by leasing my own car (an Audi A6) it was pretty much the same cost per month as it would be having a similar company car provided when you factor in taxable benefit verses car allowance. One thing that works with a company car though is going for an ultra low fuel usage car, especially a Prius, as the company car tax rates are considerably lower. The long and short of it for me is that it would cost next to no difference, but by buying my own car, I get 100% my choice of car. At the end of the term I just swap it in for another one, and have done so a few times now.
 



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