Assuming your figures are correct then it is:
£2500
- £100 trade up
- £80 BiK
- £230 car allowance
I make it £2090 though you wont have the £335 PCP to pay which takes you back up to £2435.
If it is the figures you want checking then calc BiK on the Golf here:
cccfcalculator.hmrc.gov.uk/CCF0.aspx
EDIT: Reckon fuel costs Golf v Passat would be similar.
Edited by cheddar on 05/01/2010 at 12:50
|
Thanks Cheddar - this is exactly how I had worked it out. For the record - fuel wasnt included in my OP costs. Assuming these calcs are correct, I think i will test drive both the 140 TDI and the 160 TSI. TSI is £30 p.m. cheaper on tax but TDI 7 mpg better. Will work it out properly but, given my mileage, I dont think there will be much in it and we will choose the car we like better - for once!
This has all come about because, in the last 3 months, we have paid road tax, insurance, service and 2 x new tyres - even if a company car were slightly more expensive, I might take it. bit fed up of having to find £200 - £500 in a given month, for what is basically still a 'new' car!
|
|
|
|
OP statement does not seem to add up
Take home £2500 seems too low for 40% tax payer 45K + gives a takehome pay UNLESS he has a large "investment income"/2nd income.
To pay 40% you need to earn £45K plus - check the facts as any comparison tool only works if the input is 100% correct - including tax liability of 20/40%
|
OP statement does not seem to add up Take home £2500 seems too low for 40% tax payer 45K + gives a takehome pay UNLESS he has a large "investment income"/2nd income. To pay 40% you need to earn £45K plus - check the facts as any comparison tool only works if the input is 100% correct - including tax liability of 20/40%
Sorry - but I thought you pay 40% tax on £37,401 plus?
|
Thanks Cheddar - this is exactly how I had worked it out. For the record - fuel wasnt included in my OP costs. Assuming these calcs are correct, I think i will test drive both the 140 TDI and the 160 TSI. TSI is £30 p.m. cheaper on tax but TDI 7 mpg better. Will work it out properly but, given my mileage, I dont think there will be much in it and we will choose the car we like better - for once!
This has all come about because, in the last 3 months, we have paid road tax, insurance, service and 2 x new tyres - even if a company car were slightly more expensive, I might take it. bit fed up of having to find £200 - £500 in a given month, for what is basically still a 'new' car!
|
|
|
It's not THAT difficult to knock up a spreadsheet to make the calculation for yourself, however you're likely to end up having to make a value judgement at some point and deciding whether you want to use your own money, borrowed money or the lease company's money to run your car.
When comparing self funded to company car I would suggest that you can only truly do this via a 'like for like' with the same car (so your Golf option). You can of course then compare different models funded in each way (if you have the option) - but as soon as you start comparing a Passat to the Golf then there's a value judgement involved e.g. 'do I need the space', 'do I like the image' etc.
I opted out for 4 years and ran a Mondeo Estate, it was a very good car and the experience was positive, however I ran a Mondeo, since then (and before) I've had company 'prestige' makes (Audi, BMW) and have to accept that I am image conscious. Doing the maths it would probably have been only marginally more expensive to run the Mondy as a company car. The value judgement was whether the supposed peace of mind of a company car was worth more to me - it wasn't as the Mondy was reliable and I could afford to fix it in any eventuality, in fact I rather liked being able to change the tyres when I wanted to for the brand I chose rather than being beholden to a bean counter at the leasing company.
Having said all this, I'm back with a company car for 2 reasons, firstly I do more business miles now and secondly because I can choose a 2 year lease rather than previously being stuck with 4.
SWMBO has just got a Golf VI, it is lovely, plenty of cabin space but the boot isn't very large, after your Passat you may need to consider a 'top box' or a tow bar / trailer for hauling larger loads.
|
Thanks idle_chatterer. As per Cheddar's calcs, I have been assuming that the Golf will cost me c. £400 p.m. from my takehome pay. A PCP (no deposit) on the same car, limited to 10k miles p.a., with nil deposit (on drivethedeal calculator) comes out at about £400 p.m. Then I would have to tax, insure, maintain, etc - on this basis, mainly because I am choosing a relatively green car, it seems cheaper/at worst cost-neutral to run this as a co car. Unleass I am missing something glaringly obvious!?
Like you, I am used to running somehting with a little more prestige. Unfortunately - 2 kids, nin-working wife, huge mortgage, etc means that VW is about as presigious as it gets!
SWMBO is going back to work this year, at which time we will need a second car. Maybe then I can get something a bit flashy 3 or 4 yrs old - after all, I only do about 10 miles a day (to/from train station) and would be nice to have 'something for the weekend'!
|
Clearly you're not looking to fund this from savings, in which case the company car option is likely to be attractive since someone else is borrowing the money at a better rate than you could probably get and you'll also have no liabilities as a result ?
When I ran my Mondy I funded it myself from savings - hence buying a 6 month old Ford-Direct Mondy not an Audi/BMW.
My general 'rule of thumb' is that a 4 cylinder 'prestige' mid-size (3 Series / A4) Diesel from Audi or BMW is the 'break even' point for the self-funded versus company comparison, anything 'cheaper' in BIK terms (like your Golf choice) will be cheaper as a company car, anything less tax-efficient (like a 6 cylinder A6 or 5 series) will generally be more expensive if run as a company car.
|
|
|
|
You pay 40% after £6500 PA & £37,500 = £44,000
Gross £48K
Less Pension payment £3000
Less Pers Allowances £6500
So on £48K would just qualify for 40%
|
So on £48K would just qualify for 40%
This is a big issue with company cars - for someone borderline, or just below the 40% threshold, the company car benefit takes them over so they're paying double that tax on the car that a 20% tax payer would be.
For a 20% tax payer, taking the company car is a no-brainer.
|
Thanks all for your comments - much appreciated.
Seems to be a really difficult decision!
In actual fact I earn nearly £60k - but I dont pay tax on about £20k of this due to tax-free allowance from HMRC and I also make childcare/pension/sharepurchase contributions via salary sacrifice. Suppose you cant have it both ways!
Our payround is in Feb - and a £3k bonus would move me (just!) into 40% territory. Think I will wait until then before I decide. God forbid I actually got a payrise!?
|
|
|
|
|
|
|
![2018 Volkswagen Golf 1.6 TDI SE [Nav] 5dr DSG](http://images.honestjohn.co.uk/imagecache/url/crop/90x60/https/cdn.uk.prod.group-mobility-trader.com/images/cas/a42d75dc2613ab99a2293ce25a4ba44d/f377e8e9b0788eac547a8568f634234b.jpg)
