I'm after a bit of help/advice. Work have set up a new company car leaseing system. Now the scheme seems ok for some cars etc and I understand how the lease side works ie payment before tax - NI saving - tax saving + payment in kind = monthly net cost, BUT how does this company "benefit/perk" affect my tax? We have a P11D price quoted for every car I assume this is the car value. Will this wipeout my tax free earning or only reduce it by a small amount? Undecided as to if this scheme is good or not as never had this type of thing before.
Thanks [img]http://www.fuelly.com/driver/rob2529/range-rover[img/]
04, 4.4V8, Vogue Oslo Blue with LPG.
"You can sleep in your car, BUT you can't race your house!!!!"

If something can't be fixed with a hammer....... You have yourself an electrical fault!

Go on the .gov website... It's all explained there. It basically comes down to the cars value and the Co2 levels, if you know both you can work out the level of tax you will pay...  Previously..
Vogue SE TD6
Defender 90 2.4
Defender 110 TD5
Vogue 3.5 EFI

Ok just looked and there is a company car tax calculator. Is this the right thing to look at? A new fiesta ST is showing as £112 a month is this ontop of my normal tax? In theory making the car £112 more expensive? [img]http://www.fuelly.com/driver/rob2529/range-rover[img/]
04, 4.4V8, Vogue Oslo Blue with LPG.
"You can sleep in your car, BUT you can't race your house!!!!"

If something can't be fixed with a hammer....... You have yourself an electrical fault!

From memory, Your tax code will be reduced by the p11d value X the Co2 %... Previously..
Vogue SE TD6
Defender 90 2.4
Defender 110 TD5
Vogue 3.5 EFI

Do you have the option of an allowance? My company abandoned its company car scheme because of the tax implications and most took the cash instead. Got - 2017 SDV8 Autobiography in Loire Blue
Had- 2008 TDV8 Vogue SE in Java black
Had - 2007 S/C in Stornoway Grey

Rob, if you look at a site such as listentotaxman you can work out your monthly net salary. Then deduct the cost of the car as you calculated via the car tax calculator. This is the quickest and easiest way of working out the approximate costs. If you want a specific car and it is on the car scheme it will generally work out cheaper to have it as a company car (assuming that they cover all consumables, tax and insurance etc). Your tax liability may increase if you move through tax bands though, but when I moved from being a contractor to an employee most of the cars would be cheaper overall on the car scheme. I opted out thinking I would be able to keep the FFRR, but fell foul of a restriction that the car has to be less than 5 years old (which irritatingly no-one has ever verified since), so sold my car and was going to take a company car, right until they told me that they weren't going to provide me a car immediately and that I would be in a different rental car each month for the next 4-6 months, at which point I would probably inherit someone else's knackered old nail of a car, with likely as not a 3 litre petrol engine and some horrendous emissions/tax implications.

So I opted for the cash and bought an audi A5 cab. It's not as nice as the FFRR and I haven't bonded with it in the same way I did the FFRR, but the tax is low, averages 47mpg and I am no worse off than if I had opted for a company car (at least that is what i tell myself)

http://www.fullfatrr.com/gallery/albums/us...0plate.jpg

I've seen an old work friend play the 5yr rule well.

Turned up in some really cheap looking Hyundai thing that was 2yr old and cost him buttons at an auction and was in decent nick. Bosses not happy as it didn't portray the image of a doing well company manager and told him to change it. He said no he had followed their rules but wanted a slightly older 7 series and on a private plate. They eventually gave in and he seems happy with his 730d 2006 model which the sale of an i10(and a bit of profit from it!) helped buy

Company car policies mostly suck these days unless your self employed or don't mind a van derived essential type vehicle as your all time car  FFRR MY06 facelift With TDV8 Alloys Zeros/ATR's
Mantec Sump Guard, Rigid Load liner, MY10 BT upgrade.