A question about : Cash Allowance to Company Car
Hello,
Just a quick question which i'm struggling to understand and would appreciate it explaining please.
At present I take a company car cash allowance but i am wanting to now take a car but trying to work out the impact of my net pay per month if i do so.
The part im trying to work out is :-
At present I get Ј340 pm car allowance
After tax is Ј204 take home. (Ј136 reduction)
If I take a car im trying to work out what the overall effect on my net pay each month will be.
As an example we will chose:
VAUXHALL INSIGNIA DIESEL HATCHBACK 2.0 CDTi [140] ecoFLEX SRi Vx-line Nav 5dr [S/S] 15
Taxable List Price: Ј23694.00
Monthly costs for tax year - 2015 / 2016
Benefit in kind (BIK cost) - Ј125.87 pm
Private Usage Contribution - Ј21.00 pm
Company Car Cost total - Ј146.87 pm
For working out how much my wage will be down per month, is it simply Ј204 (car after tax) + Ј146.87 CCC = Ј350.87 down a month ?
Or... does the Ј136 tax which i normally pay on the cash allowance get added back somewhere/how therefore reducing the monthly impact ?
Thanks for reading
Best answers:
- Looks like im not the only one not to understand..
so in short.. would it be Ј204 + PUC + BIK = take home amount ?
Thanks - If you lose your car allowance which looks as if it is taxed at 40% then you will lose Ј197.20 (inc NI).
If you have calculated the cost of your BiK correctly (bearing in mind there is no NI) and your private contribution then the Ј146.87 would also be deducted from your salary and you would be Ј344.07 down each month.
But you no longer have to pay for car loan, RFT, Ins, fuel, repairs (inc service). - When I looked up that car on the Parkers calculator it said the BIK was Ј160 pm for 40% tax payers. The BIK for the fuel benefit was Ј126 however.
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