Next Year's Tax Code

[Steve]

I received my 2011/12 tax code from the HMRC this morning and to say I'm not impressed would be an under-statement!

Come April 2011, I am going to be approx £109 a month worse off, all because my company gave me a new company car that I didn't really want!

[Dedcalm]

Do you have to take the car? My last company offered a car or a salary increase - so I took the increase :)

[raptorheli2]

i'd be delighted to have a new car that i don't pay servicing on etc for £109 mate-i think your doing alright.

if you can't give car back for salary increase i'd still be happy with that.

cheers

[Dedcalm]

£1308 a year is quite a lot to spend on maintaining and insuring your own car (assuming you already had one...)

[raptorheli2]

[quote=Dedcalm;571258]£1308 a year is quite a lot to spend on maintaining and insuring your own car (assuming you already had one...)[/quote]

how do you figure that?

company cars normally come with free servicing and tyres etc.

most of the people here will be paying atleast 200-400 quid for a car that is worthless (relatively) in 5 years time when company car owners can get a new one again. the only difference is you never really own the car-but-if you offered me a new mondeo, passat, insiginia etc right now for 100 quid a month for life, change my car every 2/3 years and i never buy a tyre or service i'd bite your arm off.

if it was forced upon you then that is a different kettle of fish completely ofcourse.

cheers

[danch]

[quote=Dedcalm;571258]£1308 a year is quite a lot to spend on maintaining and insuring your own car (assuming you already had one...)[/quote]

Blimey I wish it was that cheap, I spend at least £2.5k insurance, tyres, servicing etc...

Although petrol also adds a fair sum @ £500 a month, but I do have a 100 mile round trip each day...

Dan

[Mslater]

I spend

£282 to buy the car
£48 Insurance
£20 Service (annual / 12)

Thats £350 month, there will be some value in the car after its paid off so add back £4000 over 4 years £83 month

Still £267 before Road tax, and its only a kia ceed.

[ipitombi]

The wife had a company car, and paying just under £4000, a year,
(that was car and fuel duty) they charge you for fuel as well?? got rid and we are a lot better off..:boxing_smiley:

[steve_b]

Guess it depends on the car tbh, overall I'm driving a better car as a company car than I could afford to buy. As pointed out it does have some advantages, I get a new tax disk every May, don't even know how much it is to tax a car now, just had 4 new tyres fitted at ~£240 each!!, it's had a service this year and it's insured for me an the misses to drive, this costs me £150 / month so overall I'm happy.
There is also something to be said for the not having to car about a car. Some of the car parks I'm force to use for work aren't the nicest places to park in, and with the company car I'm not too bothered if it's not there when I get back, if it was my own I'd be worried about it getting nicked / damaged.

[Mart61]

I think that perhaps the point Steve's trying to make is that:

- he may have already had a company car which he was happy with, and
- his company decided to change/upgrade the model he was given, which
- resulted in a tax hike on the grounds of the vehicle value and/or calculated benefit

But I may be wrong.

[xygax]

Should have got a Van.... the tax on 1K (400) all in ... cant go wrong..

Steve

[Goto]

I go through the "should I take the the car/take the cash alternative and fund my own car" pallaver every couple of years when renewal comes round.

You have to put the emotions (hmmm shiny new BMW (or whatever)) aside and do your sums. There's a breakeven point which depends largely on your tax band, car type/P11D value and your annual private mileage.

Personally, whilst the car is nice, it's the fuel/running costs that make the decision for me. I commute 12,500 miles a year (plus at least the same in business miles), so it's the cost of fuel and servicing that really makes the difference. If I take the offered car, I get the fuel card and the servicing is taken care of. But it works out differently for everyone/every company. You really need to crunch the numbers.

[3Dheliflyer]

i wish i had worked for a company offering me a damn free CAR too.lol
my company wouldnt even by me chips for gods sake.

[Skipper Billy]

Dont forget the hidden advantages of a company car -

They can travel at amazing speeds in reverse
They perform handbrake turns and J turns so much better than one you bought
They can carry infinite loads of grit/growbags etc from the garden centre without damaging the suspension
They all have inbuilt gear shift indicators (some people call it the rev limiter)
Any unusual noises can be cured by turning up the stereo
They never need the oil or water checking
The parking assist aid is wonderful - (some call them bumpers)

:cheers2:

[barney]

Looks attractive to me given the benifits.

I earn £340 a week. Our last Paydeal gave me a £20+ REDUCTION in pay with a healthy increase in work load!

Better than running an old banger.

Brian