Car allownce

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eoinmc1

Guest
I'm in need of a little advice. I've been driving company cars for the past 5 years but my new company is offerring me car allowance of 10k per annum. I'm just wondering do i personally have to take into consideration tax and insurance and also what kind of car will i get for that allowance.
Any help will be much appreciated,
 
Assuming you pay top tax at 41%

You will be taxed on the 10k so the net after tax/prsi cash is 5300

Add to this the tax you were paying on the BIK on your previous job.
eg assume you had a 30k car with no business miles.
You would have being paying tax of 30000 x 30% x 47% = 4230.

Add this to the 5300 = 9530.
This is the amount you have every year to cover running costs, depreciation, loan interest and still breakeven with your previous scenario.
 
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