Looks like I get to choose a company car, Merc or BMW?

[gIzzE]

if you are a 40% tax payer and you have a car allowance............

But he doesn't, he has a company car.

 

[Clkrichard]

We took delivery of an A Class AMG Sport 2 litre diesel manual 2 weeks ago and are very happy with it so far. I know what you mean about the night pack cost and you get less atttractive wheels and run flats with that so we didnt.
Blue is the only colour to have and really suits it.
Its my wifes car and is currently showing 55 mpg and although she isnt pushing it yet she doesnt pussy foot around on the road.
Good choice

 

[Clkrichard]

Mileage payment on a company car is really unusual. Presumably the firm pays for all servicing, insurance, road tax etc etc, which all contribute towards the BIK charge ? So your only actual costs are the difference between fuel costs and 15p per mile ?
If diesel is say £6.50 per gallon and you get 50 mpg thats 13p per mile.
Am I missing something ?

 

[gIzzE]

Took a while to find this on the hmgov's incredibly easy website!!

But here are the figures....


HM Revenue & Customs: Company cars - advisory fuel rates from 1 December 2012

 

[Clkrichard]

The HMRC table suggests 15p per mile which is what is being paid by the employer now. I am not sure I see a problem with that ?

 

[gIzzE]

There isn't a problem, however the advice being given is crossing between company car allowance and company car, two very different rates.

Don't forget Modman that even if the company give you a poor business mileage allowance (say its 20p per mile) then you can still claim the difference up to 45p (so 25p per business mile if company rate is 20p) yourself through your self-assessment tax return. If you do more than 10,000 business miles I think the rate you can claim drops.

20p would be nice ... I get 15p! I don't have a bloody clue about tax etc and little nuggets like this are so useful so I can investigate further. Thank you, Dan.

If it is a company car you can claim....

12p per mile up to 1600cc
15p per mile between 1600 and 2000cc
18p per mile above 2000cc

The 45p rate is if you are using your own car, then 25p per mile after you have done 10000 miles. (plus 5p per mile extra if carrying a passenger).

if you are a 40% tax payer and you have a car allowance you can claim the difference between the official own car 45p and the HMRC allowance of say 18p for a 2000cc diesel.
EG: you take car allowance and do 5000 miles a year company business in your C220. at 18p a mile you get 900gbp back.If you were to do that without car allowance you would get 45p a mile so 2250 GBP

the difference is 1350 and 40% of that is 540 GBP

thats what you can claim back against your tax code

Yes..you claim tax relief on the difference ..not the actual difference ...

Everyone is talking about a car allowance, he is having a company car though.

 

[moff]

In most companies and per HMRC guidelines having a company car or taking a car allowance is pretty much the same thing?

It's then dependent on your company but most pay the advisory rates as per the link above, so for a 2.0D it would be 15p. Some will pay 40p per mile so you cannot claim any tax relief.

If you only get 15p per mile as above you can claim the difference between the 15p and 45p for the first 10k miles (IIRC) and then the difference between 15p and 25p for all miles above that. Remember it's tax relief and not the actual amount.

Also, if you have a car allowance you can claim tax relief on consumables such as servicing and tyres.

Only problem with doing that is having to do a self assessment

 

[isleaiw]

If you only get 15p per mile as above you can claim the difference between the 15p and 45p for the first 10k miles (IIRC) and then the difference between 15p and 25p for all miles above that. Remember it's tax relief and not the actual amount.

Also, if you have a car allowance you can claim tax relief on consumables such as servicing and tyres.

No you cant - that is what the mileage allowance is for and so by claiming the tax relief on the difference - as you correctly point out - you have had all that you can have.

Ian

 

[gIzzE]

In most companies and per HMRC guidelines having a company car or taking a car allowance is pretty much the same thing?

No it's not.


Two very different rates.
Company car is a benefit in kind, the presumption is that all fuel, servicing, tax, insurance and upkeep, as well as depreciation, is paid for by the company, as is fuel, however, if fuel is not, then you can claim the following rates....

HM Revenue & Customs: Company cars - advisory fuel rates from 1 December 2012


Using your own car, which can be provided with a car allowance, is paying you for the fuel and all the other expenses above, hence a much higher rate....

HM Revenue & Customs: Travel - mileage and fuel allowances

 

[chrisbin]

No it's not.


Two very different rates.
Company car is a benefit in kind, the presumption is that all fuel, servicing, tax, insurance and upkeep, as well as depreciation, is paid for by the company, as is fuel, however, if fuel is not, then you can claim the following rates....

HM Revenue & Customs: Company cars - advisory fuel rates from 1 December 2012


Using your own car, which can be provided with a car allowance, is paying you for the fuel and all the other expenses above, hence a much higher rate....

HM Revenue & Customs: Travel - mileage and fuel allowances

And if fuel is not being paid for then the BIK tax will be less too....

 

[chrisbin]

I would definitely go for the 3-series.. The real world mpg from those cars is a few years ahead of mercs tbh. Merc E-class is the way to go for a real exec drive, but the C-class is just not as good as the 3-series... not just yet. You also get more for your money in the 3. Stay away from the mtech crap and the runflats.

just my 2p

Interesting - I would agree with the first bit i.e. mpg, but not the second - definitely get more tech/equipment in the Merc imo...

As a company car 3 series is very very hard to beat due to its very low BIK taxation which results from competitive pricing and excellent co2 figures.

 

[ModMan]

Well, a long overdue update. I got the A class at the beginning of the month after about 5 month wait. I've done just over 2000 miles now and it's good. I'm pleased I took it over the 3 series even though my colleagues 3 series is better on paper (and in the flesh) on many points, but the Merc is just fantastic.

A few little quirks, the major one for me - Why don't the phone buttons on the steering wheel work in anything other than "Phone" mode on the centre display? Every other car I've had, you push the pickup phone button and it takes you to phone mode. But not this, I have to lean over to the centre console and push "Tel" or the green phone button on the radio. What a daft system. Most other things are great though