Hi Chaps.
I will hopefully be starting a new job soon, which has resulted in a nice pay rise, which takes me just under the 40 percent tax bracket.
When i get my company car the BIK ( benefit in kind) will take me over the 40% tax threshold,
So my question is, does the % company car tax get based on just your income, or do they add the BIK value. This make a big difference as is ill either be paying 20% tax on the company car or 40% tax.
For an example
Salary of 48000 if the company car tax is based on just this value i will only pay 20% company car tax.
Salary of 48000 and 5000 BIK adds up to 53000 so will i pay 40% company car tax.
This makes a difference of what car i choose as its pointless getting a pay rise to then give it all too the tax man, its nice to have a nicer car, but at the end of the day as long as its half decent and gets me from A to B, I'm not that bothered.
Thanks in advance.
I will hopefully be starting a new job soon, which has resulted in a nice pay rise, which takes me just under the 40 percent tax bracket.
When i get my company car the BIK ( benefit in kind) will take me over the 40% tax threshold,
So my question is, does the % company car tax get based on just your income, or do they add the BIK value. This make a big difference as is ill either be paying 20% tax on the company car or 40% tax.
For an example
Salary of 48000 if the company car tax is based on just this value i will only pay 20% company car tax.
Salary of 48000 and 5000 BIK adds up to 53000 so will i pay 40% company car tax.
This makes a difference of what car i choose as its pointless getting a pay rise to then give it all too the tax man, its nice to have a nicer car, but at the end of the day as long as its half decent and gets me from A to B, I'm not that bothered.
Thanks in advance.
In reply to Post #1
It's the value of the car that makes the difference I think
Ask for a van lol
Have a look at the link
https://comcar.co.uk/companycar/tax/select/
It's the value of the car that makes the difference I think
Ask for a van lol
Have a look at the link
https://comcar.co.uk/companycar/tax/select/
In reply to Post #2
Hi pal.
The value of the car does have an impact, the BIK is calculated on value of car, co2 emissions etc.
Now this is calculated to give the BIK value then you pay tax on that value.
I just want to know if the BIK value is added to your income to determine the % of tax paid.
There are some websites you can go to which tell you how much company car tax you will pay but it shows values for both 20% & 40% i just dont know which of those i will pay.
Worst comes to the worst i will ask HR in my new job, currently i get a L200 as a company vehicle, but as its classed as a commercial vehicle the company car tax is not that much. (Pretty much like having a van)
My new company are more environmentally aware and will only allow hybrid or full electric vehicles, they even have a plant which converts all wood off cuts and waste into energy to heat the offices etc. Therefore the option of having a diesel vehicle is not available,if i was i would have another L200 in a heart beat.
Hi pal.
The value of the car does have an impact, the BIK is calculated on value of car, co2 emissions etc.
Now this is calculated to give the BIK value then you pay tax on that value.
I just want to know if the BIK value is added to your income to determine the % of tax paid.
There are some websites you can go to which tell you how much company car tax you will pay but it shows values for both 20% & 40% i just dont know which of those i will pay.
Worst comes to the worst i will ask HR in my new job, currently i get a L200 as a company vehicle, but as its classed as a commercial vehicle the company car tax is not that much. (Pretty much like having a van)
My new company are more environmentally aware and will only allow hybrid or full electric vehicles, they even have a plant which converts all wood off cuts and waste into energy to heat the offices etc. Therefore the option of having a diesel vehicle is not available,if i was i would have another L200 in a heart beat.
In reply to Post #3
If you are going over to a Hybrid you will be quids in every month. I went from a large diesel Audi to one of the new Mercedes-Benz Hybrid's, I am now hundreds of pounds a month better off via less tax, this despite the Mercedes being a more expensive car.
As stated Comcar is what you should be looking at, it breaks everything down into small detail, chuck as many examples in as you like.
If you are going over to a Hybrid you will be quids in every month. I went from a large diesel Audi to one of the new Mercedes-Benz Hybrid's, I am now hundreds of pounds a month better off via less tax, this despite the Mercedes being a more expensive car.
As stated Comcar is what you should be looking at, it breaks everything down into small detail, chuck as many examples in as you like.