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Posted by Dr Zoidberg on 05/31/06 08:18
Tricky Dicky wrote:
> "Dr Zoidberg" <AlexNOOOO!!!!!!!@drzoidberg.co.uk> wrote in message
> news:4e3q6aF1d17h4U1@individual.net...
>> Tricky Dicky wrote:
>>> I have a question about company car taxation & lease agreements -
>>> anyone know which is the best group to ask the question?
>>>
>> The finance groups already suggested and uk.rec.cars
>>
>> Are you talking about tax when you get paid a car allowance and run
>> your own vehicle , or will you be getting a company car provided (or
>> have a choice of the two?)
>
> Being paid an allowance to run what I want - do you have any advice
> yourself before I go to the other groups?
>
I'm in the same position where I get a monthly allowance and then a small
amount more for each business mile I do.
The monthly allowance is treated exactly the same as the rest of your salary
for taxation purposes , so if you get a 660 per month allowance you will be
taxed at 22% and pay national insurance at 11% (different figures if you are
a higher rate tax payer obviously) and end up with 400.
For the mileage allowance the inland revenue have an approved rate of 40p
per mile for the first 10000 miles a year and 25p for the rest.
If you are paid less than that as a mileage rate then you can claim tax
relief on the difference between the approved rate and what you are actually
paid.
For example....
You do 14000 business miles and are paid 15p a mile = 2100
The inland revenue approved rate would be (10000*40p)+(4000*25p)=5000
If you are again a standard rate tax payer you can claim tax relief on the
difference between the two figures , so you get back (5000-2100)*22% =
638
Obviously the figures you are offered are going to be different but this lot
should give you a good idea of how much it will actually be worth to you and
you can decide what sort of vehicle that will allow you to run.
--
Alex
Piece by piece the penguins have taken my sanity
www.drzoidberg.co.uk www.ebayfaq.co.uk
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