Company car - New Tax Year

RichardCranium · 06-05-2009,10:06 AM

I dont even pretend to understand the income tax system for company cars but, I got my new tax code a few weeks ago, and didnt think much of it. Just shoved it in the drawer with the huge pile of other ones.

Then I got my April wage slip tuther day, and my wage has increased by £34.

I presume its car related, but i've had the B8 since June last year. Its also more expensive car than my previous car by about £3k but more fuel efficient.

Its the first time ever since having a comapny car that my wage has actually gone up at the start of a tax year. Confused? Yep, but its better in my pocket than theirs!

**Audi Happy** · 06-05-2009,12:13 PM

Me too, I got my A4 last sept and wahoooooo £ 98.00 better off per month as of April.
I've gone from an Alfa GT 2.0d. which was about 5K cheaper on list price.
I get personal fuel as well though.

Audi, the car that just keeps giving.

Ps keep this quiet and dont tell the tax man

RichardCranium · 06-05-2009,04:37 PM

£98! Nicely...

I also get my private fuel paid for.

**parko** · 06-05-2009,04:55 PM

The amount of tax you pay is the list price + any optional extras multiplied by a % which depends on your co2 emissions. For the A4 2.0TDI 143ps this is 18%

The private fuel tax is £16900 multiplied by the same percentage. Your tax code is then altered by this amount plus any other benefits you receive.

Also if you change car mid tax year it is best to tell the tax man and they'll adjust your tax code for the new one.

Otherwise you may end up with a big tax charge at year end as one of our sales reps found by assuming that the company informs the tax office of the change, this week he was hit with a tax bill of £3k!

**Jop** · 06-05-2009,05:52 PM

I want to say. "I brought my own car. Screw you, your free cars and tax back "

But people may take offense.

**B6Andy101** · 06-05-2009,08:14 PM

The tax bands have changed

Income Tax rates and taxable bands

2008 - 2009
Basic Rate 20% - £0 to £34,800
Higher Rate 40% - over £34,800

2009 - 2010
Basic Rate 20% - £0 to £37,400
Higher Rate 40% - over £37,400

**Audi Happy** · 07-05-2009,08:38 AM

Originally Posted by Jop

I want to say. "I brought my own car. Screw you, your free cars and tax back "

But people may take offense.

Another simple minded person who thinks a company car is free, rest assured the amount paid in tax on the benefit makes it far from free

**Jop** · 07-05-2009,10:48 AM

Not understanding the ins and outs of company car tax system doesn't make you simple minded.

Say, for example, you have a 30k company car for three years. How much would this cost you in tax?

**Audi Happy** · 07-05-2009,11:09 AM

Originally Posted by Jop

Not understanding the ins and outs of company car tax system doesn't make you simple minded.

Say, for example, you have a 30k company car for three years. How much would this cost you in tax?

Sorry, Woke up in a crap mood this morning.

Depending upon the emissions of the car and the fuel type your looking at about £3,500 per year including fuel benefits

**andyrp** · 07-05-2009,10:04 PM

Originally Posted by Audi Happy

Depending upon the emissions of the car and the fuel type your looking at about £3,500 per year including fuel benefits

It also depends on the rate at which you pay income tax with higher rate tax payers paying considerably more tax for their company car and fuel than lower rate tax payers.

Andy