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Posted by CCLeasing on 06/07/06 11:30
Company Car Opt Out isn't always the best way to go. It very much
depends on the nature of the vehicle you are intending to lease.
If the vehicle is very expensive then the personal lease you are
speaking of makes sense. But if the vehicle is at the lower end of the
spectrum, and has low Carbon Dioxide emissions then it may make more
sense to look at business lease - and have your company take on the
lease. Although you will incure BIK taxation the company will be able
to write down a high proportion of the rentals against profits, and
also be able to claim back half of the VAT (all of the VAT if a
commercial vehicle) which may well subsidise the Benefit in Kind tax.
If anyone is thinking about leasing and wants more advice or some
quotations, send me an email at ' gary dot ccleasing dot co dot uk '
where the email address is all one phrase without any spaces - i've
replaced . with dot to evade the spam harvesters!
Gary Moylan.
CCLeasing.
Tricky Dicky wrote:
> "Dr Zoidberg" <AlexNOOOO!!!!!!!@drzoidberg.co.uk> wrote in message
> news:4e51krF1cubplU1@individual.net...
> > 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.
>
> I have proferred some figures in the other ng. I am looking for a basis to
> begin my negotiations - I don't want to appear greedy or that I am trying to
> run a 7-series but on the other hand I want to make sure that I at least
> break even
>
> Tricky
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