As I am about to change jobs where a some sort of arrangement will be agreed through a combination of car allowance and / or fuel card and / or company car.
I am trying to understand what will be better financially speaking, and also the tax implications.
These are my considerations;
- home to office travel is 80 miles return, journey to be made about once or twice per week (three to four times per week I would drive from home to client sites, or be away on UK business travel)
- other private mileage expected to be very low (the odd weekend trip to the shopping mall etc)
- business mileage from home to client sites expected to be considerable, and certainly exceed home to office private mileage
- could use public transport from home to office if this works out cheaper (although journey would be higher in stress levels..)
- I do not have a UK license, but have 10 years non UK license. Have not had a car insured in my name outside of the UK so do not have a no claims bonus to transfer
- I do not currently own a car, and suspect insurance premiums would be sky high even with car parked in garage in apartment complex (just to see I got a quote of 2400 for a 1.9 TDI Skoda Octavia that I might buy. This seems quite steep?)
- I will only stay in the UK for another few years, and don't particularly fancy taking any owned car with me, so this gives me a preference for a company car
I have sort of worked out that I should go for the company car as opposed to owning my own car and claiming the company for business mileage.
I was reading on the Inland Revenue site, and found leaflet IR172 about company car taxation. If the 'price' is say 15,000, and say the CO2 emissions dictate a price level of 15%, this gives a 'taxation charge' of
2,250.
Is this the value of the taxable benefit, or is it the actual tax that I have to pay? (apologies if I'm being stupid here but nothing would surprise me when it comes to the tax man..)
Thanks ________________ Guttorm