Company cars and tax?
13-09-2010, 06:24 PM
#1
Too many posts.. I need a life!!
Thread Starter
Company cars and tax?
Whats the deal with tax and company cars? fiancee may be getting one but been told she will pay more tax. How does it work?
13-09-2010, 06:53 PM
#2
you have an allowance (example £3000)
this allowance is deducted from your tax code (example 437)
you pay tax on more of your earning as a reslut (on earnings above £1370 per year rather than £4370 a year if you use the above examples or anything over £84 a week or £26 with the car)
this allowance is deducted from your tax code (example 437)
you pay tax on more of your earning as a reslut (on earnings above £1370 per year rather than £4370 a year if you use the above examples or anything over £84 a week or £26 with the car)
Last edited by dojj; 13-09-2010 at 06:55 PM.
13-09-2010, 07:08 PM
#3
PassionFord Post Whore!!
Not quite...
Car PAYE tax is based on lots of things.
Co2 emitions
Vehicle price when new
Tax band
Etc Etc Etc
Your HR/Payroll department will notify the inland revenue using form P11D each year of the car and its taxable benefit.
The problems arise as this is only carried out once a year and so you may end up 11months in arears.
As soon as she gets one get the company to work out the P11D or do it yourself and ring the tax man with the details so they can adjust your tax code immediatly.
They also tax you on a fuel card if the fuel card also includes personal mileage as this is a taxable benefit.
When I had a mondeo 2.0 TDCI Lx 2003 and a fully expensed fuel card it worked out at around £110 a month extra tax I think.
What Dojj is talking about is a car allowance.
If you get this its just like having the salary - I get a car allowance of £4260 pa and its taxed as normal.
But if you have a car allowance most companies have policies relating to the age and type of car so its not always beneficial to take the money.
Car PAYE tax is based on lots of things.
Co2 emitions
Vehicle price when new
Tax band
Etc Etc Etc
Your HR/Payroll department will notify the inland revenue using form P11D each year of the car and its taxable benefit.
The problems arise as this is only carried out once a year and so you may end up 11months in arears.
As soon as she gets one get the company to work out the P11D or do it yourself and ring the tax man with the details so they can adjust your tax code immediatly.
They also tax you on a fuel card if the fuel card also includes personal mileage as this is a taxable benefit.
When I had a mondeo 2.0 TDCI Lx 2003 and a fully expensed fuel card it worked out at around £110 a month extra tax I think.
What Dojj is talking about is a car allowance.
If you get this its just like having the salary - I get a car allowance of £4260 pa and its taxed as normal.
But if you have a car allowance most companies have policies relating to the age and type of car so its not always beneficial to take the money.
13-09-2010, 07:26 PM
#4
we've had a letter in the past few weeks telling us that we are not allowed to use the vans to do any personal mileage due to the tax issues and we have to keep accurate records, meaning i've got to keep accurate records, meaning i've got to chase the drivers about like a blue arsed fly while they figure out more and more inventive excuses as to why there is an addition 96 miles on the clock over the weekend 
13-09-2010, 11:08 PM
#5
PassionFord Post Whore!!
Craig J
Your girlfriend needs the manufacturer's List price for the car and accessories that applied the day BEFORE the date of first registration.
She also needs the official CO2 g/km figure. The CO2 figure gives the % of the list price that she pays tax on at her highest rate. But, if it is a diesel, add 3%.
If she gets ANY free fuel for private use (regardless of how it is paid for, not just a fuel card) take the same % and apply it to £18,000 per year to establish the amount she pays tax on for the private fuel benefit. Very few people get any value from this "benefit" nowadays unless they do lots of miles in a fuel-inefficient car (which clobbers them for car benefit tax).
Like Shings says, it's best to make the tax man aware of the car (and fuel) as quickly as possible, otherwise you will just build up a bill. She can have the employer do it for her, or just ring them up herself and give them the details direct.
More info and a calculator are here:
http://www.hmrc.gov.uk/calcs/cars.htm
Dojj
Why not simply let the drivers pay the tax on the private use of the van? - No admin for you, and a bill for them.
Or withdraw insurance for non-business purposes and see how many will risk driving without insurance.
Your girlfriend needs the manufacturer's List price for the car and accessories that applied the day BEFORE the date of first registration.
She also needs the official CO2 g/km figure. The CO2 figure gives the % of the list price that she pays tax on at her highest rate. But, if it is a diesel, add 3%.
If she gets ANY free fuel for private use (regardless of how it is paid for, not just a fuel card) take the same % and apply it to £18,000 per year to establish the amount she pays tax on for the private fuel benefit. Very few people get any value from this "benefit" nowadays unless they do lots of miles in a fuel-inefficient car (which clobbers them for car benefit tax).
Like Shings says, it's best to make the tax man aware of the car (and fuel) as quickly as possible, otherwise you will just build up a bill. She can have the employer do it for her, or just ring them up herself and give them the details direct.
More info and a calculator are here:
http://www.hmrc.gov.uk/calcs/cars.htm
Dojj
Why not simply let the drivers pay the tax on the private use of the van? - No admin for you, and a bill for them.
Or withdraw insurance for non-business purposes and see how many will risk driving without insurance.
14-09-2010, 08:33 AM
#6
It's because so many of our vans don't have allocated drivers now, out of 9 vehilces, only 5 have allocated drivers and 3 of them are on long term hire so you just know they het used and abused, especially the one that came back full of cement and rubble, and when our vehicles are supposed to be spotless due to us carrying very expensive meds in the back it can cause all sorts of complications if we were to be pulled up on a spot check. Firing the driver isn't as big an issue as losing a multi million £ contract because of it.
14-09-2010, 08:52 AM
#7
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one car accessory car parts company(in nottingham lets you drive around delivering in cars-vans with no mot!!!!!!-they say! wait for it----------(drivers log can prove you was driving on the days aswell)
if you dont drive then your no good to us!!!!!- go home-f------ing twats
this was the reply when the company was confronted with with the question are we legally on the road??,
this wasnt a mistake on their part they just didnt mot them,even after confronted they waited 5 days till the end of the month came around before mo-ting.
moral is -they can tell you anything to get you
driving.
how many out there can honestly say your vehicle is legally on the road????
i found out using a small pc prog-
i printed it out and shown to them!!! they dont give a shit as long as the parts are delivered drivers are 10 a penny--more tlike a thousand a penny at the moment!!-------------
yes i know its the drivers responsibility(police,accident etc etc) as to the vehicle but you expect the vehicles to legal-05-07 plates.
if you dont drive then your no good to us!!!!!- go home
-f------ing twatsthis was the reply when the company was confronted with with the question are we legally on the road??,
this wasnt a mistake on their part they just didnt mot them,even after confronted they waited 5 days till the end of the month came around before mo-ting.
moral is -they can tell you anything to get you
driving.
how many out there can honestly say your vehicle is legally on the road????
i found out using a small pc prog-
i printed it out and shown to them!!! they dont give a shit as long as the parts are delivered drivers are 10 a penny--more tlike a thousand a penny at the moment!!-------------
yes i know its the drivers responsibility(police,accident etc etc) as to the vehicle but you expect the vehicles to legal-05-07 plates.
Last edited by rubinsbin; 14-09-2010 at 09:00 AM.
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