Chat & Social > The Bar - General Chat
Company car tax
TimM:
--- Quote from: "hingmy" ---.
To alleviate his burden i was looking at a 3dr golf tdi (£477 tax to me) but from what you say a commercial would at present be tax free. Am i correct in reading your answer that as of april 2007 i would be taxed at 22% of 3k (£660 p/a). What happens to a car like the golf at april 2007?
--- End quote ---
IF at present you would be tax free then April 2007 you will still be tax free - UNLESS you are doing 'significant' private mileage.
have a look through the posts further up and you will see what I mean.
Company CAR tax has always been 'expensive' and will not be significantly changing for the near future.
Many people who can 'opt out' of having a company car do, and buy their own then claim 40p per mile for the first 10,000 miles of business use and 25p a mile thereafter, so at your 35,000 miles you would claim:
10,000 miles at 40p = £4,000
25,000 miles at 25p = £6,250
TOTAL £10,250 each year (tax free)
Which to many people far exceeds the cost of buying and running their own car, and saves them on tax costs.
Tim 8)
woody:
--- Quote from: "hingmy" ---Do about a similar amount and saw the tax eat my raise and leave me 40quid a month worse off this year. So am keen to ease the pain.
--- End quote ---
this may or may not help(could even be playing in the wrong sand pit)
i have worked in a number of garages and we used company vehicles from a small pool (about 3) of vehicles no single person had use a vehicle and nobody paid any extra tax.
with the money saved you could put it towards your next 4x4 (or the wife could spend it)
dazzawhipple:
--- Quote from: "TimothyM" ---
--- Quote from: "hingmy" ---.
To alleviate his burden i was looking at a 3dr golf tdi (£477 tax to me) but from what you say a commercial would at present be tax free. Am i correct in reading your answer that as of april 2007 i would be taxed at 22% of 3k (£660 p/a). What happens to a car like the golf at april 2007?
--- End quote ---
IF at present you would be tax free then April 2007 you will still be tax free - UNLESS you are doing 'significant' private mileage.
have a look through the posts further up and you will see what I mean.
Company CAR tax has always been 'expensive' and will not be significantly changing for the near future.
Many people who can 'opt out' of having a company car do, and buy their own then claim 40p per mile for the first 10,000 miles of business use and 25p a mile thereafter, so at your 35,000 miles you would claim:
10,000 miles at 40p = £4,000
25,000 miles at 25p = £6,250
TOTAL £10,250 each year (tax free)
Which to many people far exceeds the cost of buying and running their own car, and saves them on tax costs.
Tim 8)
--- End quote ---
Umm This is what I do for my own Limted company I do 30,000 miles a year
TimM:
You are quite right, pool cars are not taxable to any particular individual, and hense are not taxable at all.
BUT
These cars must not be for the exclusive us of any particular employee, they must (or usually should) be left at the 'business' overnight, and should not be used for any 'private' mileage.
Tim.
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