OldSkoolRS

If I take a £5k per annum car allowance instead of a company car does it get taxed as if it were a company car (i.e. do I have to declare a particular car to the inland revenue boys?) or is it just lumped in with your salary?

OldSkoolRS

Anybody?

No?

Dust

Shings

Lumped in with your salary- you pay normal income tax and Ni.

I am just about to take a car allowance.

I was gonna get a focus RS now I am gonna get a Clio 182.


You dont tell inland rev anything because they dont need to know owt.


My company will be paying me about 14p a mile in expenses... I will then claim back the tax relief on the difference- gov't give you 40p


Jake

JjCoDeX75

As above - i have been doing this for a while - it usually works out quite a lot cheaper in the long run!

JJ

Shings

Also

The choice of car i have in my grade-- is --- quite frankly SHIT

I have been offered a 1.4 diesel Toyota Auris. 89bhp.

OR

£3500


You do the math


Jake

OldSkoolRS

Sweet, e46 M3 convertible it is then!

BigNige

As shings as pointed out

You dont need to do anything with the car allowance as its taxed at source in the same way your wages are

If you get a mileage rate of less than

40p for first 10000 miles and then 25p per mile after that you get the rest BACK from the tax man

Eg

if you get 14p a mile and did 30000 business miles a year you would get from your employer

14p * 30000 =£4200

the govermnet says you can claim the difference ie

10000 at 26p a mile because your underpaid = £2600
then 20000 at 11p = £2200

so you would be entitleed to claim the TAX Element of that

so total is £4600

if your a 40% tax payer you would get £1840

if your a 22% tax payer about £900

YOu do this via your self assessment tax return and you need to ask for the EMPLOYMENT pages which are seperate

You can claim BACK up to 4 years HISTORICALLY

I did and got £7k


If you had a car not the allowance you would be paying shed loads of EXTRA tax but benefit of a new car etc

Hope this helps

NIge

BigNige

PS

I get £8000 a year car allowance
plus 40p a mile and i drive a diesel A6

ill do 40000 business miles this year and earn about £500 a month profit on that

NIge

Shings

Nice one Nige.


The form to use to reclaim your tax is Form P87.
http://www.hmrc.gov.uk/forms/p87.pdf

My allowance will pay for my Clio 182 and servicing- I'll keep the car for 3 years while I am still doing day release at uni. By which time it will be paid off. Then get another car with my allowance and TRACK THE FUCK out of the Clio.

Jake
PS- i will track it anyway.

Paul Eggleton

Also, you don't have to claim. I wouldn't normally complete a tax return and so the refund is made via the tax code increasing. The only problem with this is that you don't get the refund in one lump sum (I believe - as I'm doing this for the first time this year).

So I will opt into completing the self assessment.

OldSkoolRS

It won't actually get used for business so it counts me out of the whole mileage thing. Just wanted to make sure I won't get my pants pulled down over tax!!

OldSkoolRS

My bird has got a 1.4 diesel yaris, its wicked! Quite amusing to drive and proper cheap to run...... proper homo wagon though as its baby blue in colour.

Balaclava anyone?

Shings

You can ask for it all to be paid in 1 lump sum rather than some of it going on your tax code.

I didn't intend to have to do this next year so asked for that.

Turns out I will be now so the tax code reduction would have done me.



OLDSKOOLRS

Its an AURIS not a YARIS- its a new one.. and its full gimp spec.

scottp

where is the best place to get a lease car from? My mum has just started a new job with a £500 a month allowance but we are having trouble finding somewhere that does an all in lease policy for around 2 years (it needs to have insurance and repairs inculded in the monthly premium)

Any help would be appreciated

Shings

Dunno Scott- get a loan mate... the allowance will pay for it.