Hi
My savings are based upon the money not paid in company car tax for 2019-202 (£4,215.72/year) and the allowable mileage I can claim i.e. 40p/mile for 10000 miles and then 25p/mile after that based upon 22000 miles per annum (£7,500.00 per year) and then a pay increase which matches what the company were paying for the fully expensed and maintained car (£12,684.00 per year) less the £7,500.00 they will be paying me for mileage. Therefore the Company is no worse off.
My increase in salary therefore calculates at £ 5,184.00 per year extra.
The nett increase in my take home is therefore £ 7,200.00 made up from not paying the Company Car Tax and the increased wage after tax and national insurance deductions. Add on the £ 7,500.00 for the allowable expenses and this calculates to £ 14,700.00 better off from which I need to run a car over 25,000 miles.
The lease is £ 452.00/month and I have allowed £ 300.00/month for insurance, maintenance and road fund licence - approximately £ 9,000.00/year.
Fuel over 25,000 miles at 45mpg at £ 5.85/gallon works out at £ 3,250.00 so my total outgoings are approximately £ 12,000.00 which makes me £ 2,700.00 better off.
It all depends on the salary increase and if the company will pay the mileage rates as opposed to having to claim them back in tax but works for me and the company.
Hopes this makes sense.