Bik Company Car

F

Fire away

Registered User
Messages
72
Hi, I need some advice im starting a new job with option of company car. It will probably be new VW golf or something similar. Just trying to work out is bik worth it's while. I only live 2 miles from job and 4 out of 5 days will be based in office and 1 day on the road maybe 50-100km. I can claim expenses on my own car if I turn down company car. The company car they will cover fuel, tolls, insurance services etc. Not sure what would be best? Any ideas
 
Not sure which but it would be in with previous employer which was 52c a mile. I never paid tax on that straight into my account. Is there a difference? I just don't get tax
 
As you will be doing less than 30k miles you will be assessed to tax on 30% of the original market value of car.
So as example, if car is 30000, you will be taxed on 10k per year which is roughly 5k tax if you are on the top rate of tax.
You need to work this out yourself.


Compare that to cost of running a car yourself. Are they willing to allow you unlimited fuel allowance ? if so and you do a lot of private mileage it may swing in your favour to take the company car. A company car is nice as you have no worries or headaches but you need to work out both sets of figures first., incorporating the 52c / km that you would get every week in expenses.
 
Having had the luxury of a company car for years, for me it's a no-brainer, I'd always take the company car. Motor tax, insurance, fuel, tyres, servicing, depreciation, tolls (parking?). I wish!
 
You pay tax on 30% of the market value of say 22k. That is 6,600 of a BIK of which you will pay approx 3,300 in tax. 3,300 for full use of a car alone is a very cheap car IMHO. Nevermind with a fuel card, tax, insurance service tyres etc. Tax, insurance, maintenance and tyres alone are 2,000 odd of a benefit plus a fuel card is worth a fortune to you. Even with a limit of 50 quid a week fuel its still the 2,500 in mileage covered. Mileage is great but say 2,500 mileage is recieved a year. You still have to pay your own expenses including fuel, depreciation of a car, insurance, tax etc. I think you would be mad not to take the car IMHO
 
You must log in or register to reply here.
Back
Top