Help - car allowance

HI all

I am new to this, so would appreciate your help.

I have recently started a new job, which includes car allowance,and as I previously had a company car in a different company,  I need to sort one out ASAP.

I receive the following:

£450.00 p/month (before tax)

20p per mile for business miles (I believe I get tax relief on another 25p for first 10,000 miles at the end of the tax year?)

 

Approximate mileage (combined business and personal) is 25k.

I am looking at a Personal Contract Hire (in my name as the company won't do it), based on the high mileage.

Can anybody recommend:

Any companies who offer competitive rates?

A fuel economical Diesel car that wont cost the earth but looks good.

Maintenance - is it worth it at approx £60-£70 per month?

Tax claims - P11. Is there ahything except the mileage that I can claim back as using the car for business use?

 

Many thanks for your help

Take the cash in my opinion

1 year 41 weeks ago

Take the cash in my opinion

Proud Corsa D Owner - MY Corsa D guide and blog

Thanks for your advice. Have

2 years 6 weeks ago

Thanks for your advice.

Have I understood this right?

The £450 per month is taxable though just the same as Salary isnt it? Which dilutes it to about £310-£320 a month. Take into account insurance (high on 25000 miles a year) and maintenance (not sure if this is necessary) and it doesnt stretch that far - but the 20p per mile mileage allowance helps!

THanks again for your help, I'm pretty clueless on these

Tax relief on lunches - how do I go about logging/claiming on this?

 

Cheers

Simon

 

 

 

Assuming you have not joined

2 years 6 weeks ago

Assuming you have not joined a one man band, ask other employees what they do, and about how the system works. I would ask more than one to be able to get a fairer idea of what is normal. Good luck.

Just to give you basic

2 years 6 weeks ago

Just to give you basic numbers.  The car allowance needs to be compared to a company car, not no car to make a fair comparison.  Lets say you car allowance equates to a £20k company car in the 20 percent bracket and you are a 40 percent tax payer.  The tax on that is £1600 per year.  Whilst you take off the tax you pay on the car allowance you need to add the company car tax you would have paid on a company car.  Your allowance is £5400, less tax leaves £3240.  Add on the car tax and you have £4840 per year.  Other income streams on 25000 business miles are your 20p per mile from the company (£5000) and you tax rebate on the first 10000 miles (£1000).  That means you have £10,840 per annum or if you cost over 3 years £32,520 to fund driving 75000 miles.

Buy a nearly new focus for £12,000, insurance for me through direct line for 25000 miles is £400. Lets assume £1500 for three years, tax about £300, servicing £1500 and tyres £700.  The biggie fuel at 50 mpg is £9542.  

That totals £25542.  The profit is £6977.60.  Remember though you also now own a well used focus worth about £5,000 so you have made about £12000 in three years.  If you have to take a loan you also need to factor the cost of financing.  These sums can go very wrong if you spend too much money up front and loose lots in depreciation or have big insurance premiums.

 

To answer the tax on lunches, you need to be not at your normal place of work, not gettinlg lunch expenses and buying lunch while you are out.  The cost of making sandwiches does not count and you can't take any of it home, it must be consumed while away from home.  You can then claim the lunch as a non reclaimable business expense on your tax return In the same place you put the mileage claim.  Not many people bother with it but i go to London about 100 times per year and spend about £700 on lunches so I get £280 back.  

If you have not sorted this

1 year 42 weeks ago

If you have not sorted this out yet visit out site at www. conceptvehicleleasing .co.uk we will assist you further. 

dudley83 wrote: If you have

1 year 42 weeks ago

dudley83 wrote:

If you have not sorted this out yet visit out site at www. conceptvehicleleasing .co.uk we will assist you further. 

You spelt assist wrong, in the context you mean the spelling is fleece.

 

 

 

Dudley, seriously, fuck off.

1 year 42 weeks ago

Dudley, seriously, fuck off.

Lesia44@ Do you kiss your

1 year 41 weeks ago

Lesia44@

Do you kiss your loved ones with that mouth?, if someone annoys you, do what i just did?

Peter Cavellini.

Peter Cavellini

1 year 41 weeks ago

Peter Cavellini wrote:

Lesia44@

Do you kiss your loved ones with that mouth?, if someone annoys you, do what i just did?

Yes, I do. And what makes you think I was annoyed?

Lesia44@ Well gratuitous use

1 year 41 weeks ago

Lesia44@

Well gratuitous use of the F word for a start, or is swearing part of your normal, non aggressive way of talking?, you can get your point over without profanity, can't u?.....now, think before you answer, happy Chinese new year!,by the way.

Peter Cavellini.

I suggest you buy a nearly

2 years 6 weeks ago

I suggest you buy a nearly new car with a big discount from a car supermarket.  Over 3 years this approach will save you thousands.  I have done the sums.  I purchased a 6 month old v50 ran for 60k miles over 3 years and saved about 10k cash against running a new 3series.  

If you really want to make some money buy a £10k focus diesel or similar with about 10k miles.  

You can't claim any additional motoring tax relief but you can claim lunches/dinners against your tax when travelling.  

Have to agree with PhilM400

2 years 6 weeks ago

Have to agree with PhilM400 on this one. 

A friend did the same thing and took the money option from the company and bought a very comfortable, very economical but very boring Passat diesel and made decent money after just two years.

Looking at your figures though (£450 PCM) I can see the attraction of leasing as you will get some quite tasty machinery.

Unfortunately, depending on what you fancy, the best way is still to shop around.

 

 

It's all about the twisties........

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