Hi
I have heard that a lot of companies seem to provide company cars to their staff.
My question is, do employees have to generally be employed for a set number of years?
Also, what kind of jobs offer this. Do you need a high level of education and good work experience history?
It is just a friend interested in this wanted to know.
Thanks
Greg
|
|
***
|
No
and probably yes. (well we used to demand it anyway)
|
|
|
|
My question is, do employees have to generally be employed for a set number of years?
No.
Also, what kind of jobs offer this.
Usually one where you are driving a lot but not always.
Do you need a high level of education and good work experience history?
No.
|
different companies have different policies. You may find that their insurance scheme rules some people out for example.
Co. cars can be because the user needs to travel or as a perk. Sometimes companies offer a car, sometimes a lease at a preferential rate, sometimes a cash payment.
There is not an absolute answer.
|
In my case, it's because I own the company and I can run a fantastic car for a pitiful amount of company car tax.
Another nice thing about owning the company is that you can make whatever policy you like about anything !
MTC
|
In my case, it's because I own the company and I can run a fantastic car for a pitiful amount of company car tax.
..but if you own the company, you're effectively spending your own money anyway?
|
>you're effectively spending your own money anyway?
Some of it, but you're spending a reasonable amount of Gordon's as well.
|
"Some of it, but you're spending a reasonable amount of Gordon's as well."
Which is the nicest feeling of all.
|
|
|
>you're effectively spending your own money anyway? Some of it, but you're spending a reasonable amount of Gordon's as well.
but then you're paying him (especially on something like a 300C) a pretty chunky amount in BIK tax.
|
Ok, this is how I look at it.
The company buys and runs my 300C out of profits before taxation and I also get to set the depreciation of the car against my profits.
If i was to buy the car, I would need to earn an additional £26000 ish AFTER TAX & NI to buy the car (& the company would get slated for NI as well).
Plus I'd then have to pay myself a small fortune extra to run the beastie (again paying large wedges of tax & NI, plus the NI for the company).
Whereas doing it this way, I just have to pay the BIK.
Which is as follows.
For a lower rate tax payer £1871 per year, £35.98 per week
For a higher rate rax payer £3402 per year, £65.42 per week.
So I get to drive a wonderful car, and Gordon gets either £35.98 or £65.42 per week off me in tax.
So me it seems a very fair exchange - what sort of car could I afford to buy and run for £5.14 a day ?
MTC
p.s. I don't do a lot of miles, so an expenses per mile plan is N/A.
|
26K after tax and NI ?
What happened to dividends ?
|
26K after tax and NI ? What happened to dividends ?
Tax is still applicable to dividends.
Up to the end of the basic rate of tax, 10% tax is removed before yu get the divi, and if your earnings for the year tae you into the higher tax category, the additioanl divis attract tax at the rate of an additional 22.5%.
So, in effect a higher rate tax payer will pay 32.5% tax on their divis (or at least part of them), but no NI.
Still less than under the PAYE regime, but tax to HMG regardless.
MTC
|
I know - Im also a co.director.
But no employers or employee NI and it is still lower tax - the comment about earning 26K before tax and ni is misleading I think.
I always did high miles so the allowance scheme is better.
|
I know - Im also a co.director. But no employers or employee NI and it is still lower tax - the comment about earning 26K before tax and ni is misleading I think.
>
Hi Mark99,
mabye not misleading, (not deliberately anyway), but I'll try and make my point a bit clearer.
If I wanted to purchase the car as a private motorist, I would need to have the corresponding amount of my own cash (after Tax & NI) to buy it with, or afford to pay the monthly payments with.
I used the £26K figure as it realted directly to the price of my own car, which I have used in the examples that I have given.
To me, that's a bit clearer, is it to you as well ?
MTC
|
|
If i was to buy the car, I would need to earn an additional £26000 ish AFTER TAX & NI to buy the car (& the company would get slated for NI as well).
Well ? not £26,000 per year though!
Plus I'd then have to pay myself a small fortune extra to run the beastie (again paying large wedges of tax & NI, plus the NI for the company).
That?s true.
So me it seems a very fair exchange - what sort of car could I afford to buy and run for £5.14 a day ?
Do you really not get the company to pay for fuel? I would have thought that was one of the main advantages, especially if you don?t do many business miles.
Like the way you did a tax calculation at 22%!
|
Do you really not get the company to pay for fuel? I would have thought that was one of the main advantages, especially if you don?t do many business miles. Like the way you did a tax calculation at 22%!
Hi Bill Payer
No Bill Payer, I pay for all of the private fuel myself. If the company was to pay for it I'd be liable to a tax charge of either 22 % or 40% on £4752. Which would be either £10.45, or £36.55 per week depending on the appliicable tax band.
For my earlier post I used both 22% or 40% throughout, except for where I used the final figure of £5.14 for the daily charge, which as you say was at 22%.
MTC
|
|
|
|
|
|
|
|
|
|
Greg: car companies tend to provide a good lease scheme, I know VW Group does for it's employees (including Bentley, which is why there's so many Audi TTs in South Cheshire!). I imagine Jaguar/Land Rover/Ford do as well.
|
Out of interest, I already have a job. Anyway, where are the best places in peoples opinion to find good, sustainable employment? Any websites known, or good agencies in London.
Thanks
|
www.gojobsite.com/
Register. Upload your cv, await the calls from agencies...........
|
Keep it to motoring please...
smokie, BR Moderator
|
There has been an interesting social change in attitudes to company cars since long ago.
I remember in about 1965 being very impressed by my friend's father's new Austin Westminster. But my mother said, "It's not his, it's only a company car". He had tried to hide this embarassing fact by pretending that it was his own car.
|
But for a young lad like me, a co car would help me 'pull the birds' as they say. Of course, I am not interested at all with this, honest!
Just be cool to run a cool car on someone elses budget...that would be a luxurious life!
|
|
|
|
