Having not had a company car since the early 90's (before you were nobbled for tax), I'm not sure how this scheme works. Are you taxed twice (on the benefit in kind and the allowance)? Or just on the allowance alone?

Also, any tips on which way to go wrt vehicle? The allowance seems to be quite generous, but if it's taxed to bits, I may need to lower my expectations a bit.

I am not excited one-little-bit about the prospect of getting a shiny new car. No sir-ee. Not a jot. Nope, not me.

8)

Just the allowance + any fuel they give you

With my car allowence you are just taxed the once.

Ah, so I don't need to worry about C02 ratings and taxable values?

nope

Oh yessssss. 😈

<reopens the Subaru Legend catalog>

EDIT: <closes Subaru Legeng catalog> I have to pay for my own fuel. 😕

Okay then, any suggestions? Economical, comfortable, spacious (I'm 6'2" & I have two kids under 5years old (and associated paraphernalia))

I would imagine you get either a car or the cash allowance added to your wage. if you take the allowance you get taxed on it as income. If you take the car you get taxed as if it were income based on the list price of the car multiplied by a percentage based on it's emmissions.

Just be careful that you don't spend all your net allowance on car payments & forget about maintaining it
Also be care with what mileage allowance you get

uplink – I'd still do the majority of my commute on my motorbike, so mileage I'm not too fussed about. Good shout on maintenance though.

Okay then, any suggestions? Economical, comfortable, spacious (I'm 6'2" & I have two kids under 5years old (and associated paraphernalia))

Passat estate Blue Eco thingy?

re-open the subaru catalog and turn to the page for the Diesel Legacy. It's good.

And for any business miles you should als0 get 40ppm (first 10k miles) and 25ppm after that.

Spend the least you can, its cash and no different to any other income.

Also depends on the miles you expect to do, company or otherwise, and the consequential income.

When my last company car was handed back I took the cash option, and bought a big old BMW – due to the lack of personal miles vs company miles, and also not wanting to spend a load up front, plus bought a motorbike for the commuting.

Passat estate Blue Eco thingy? Huge, any good to drive?

re-open the subaru catalog and turn to the page for the Diesel Legacy. It's good. oooooooh!! Thank you.

br – I was wondering about a contract hire/lease/thingamajig. I'm not sure whether company mileage would be claimable, is it?

http://www.hmrc.gov.uk/calcs/cars.htm

Passat estate Blue Eco thingy? Huge, any good to drive?

I borrowed one for a shortish trip & quite liked it
It was all town driving so I'd be concerned what it was like when a bit of power & torque are usually needed

He's not getting a company car Macavity

No, but thanks for the link 😉

My car allowance is simply an extension of my salary (paid monthly) i.e. I pay the tax on it in the same way and that's it. It's up to me what car I have, so things like CO2 and all the other guff mean nothing. I also claim mileage.

I was wondering about a contract hire/lease/thingamajig. I'm not sure whether company mileage would be claimable, is it?

All irrelevent. You are covering company miles in a car paid and managed by yourself.

TBH Before shelling out a load of cash every month and signing up to a long term deal, work out exactly how much income you'll have pcm.

Like I said I bought a 10 year old 535i (£2k), it had only done 80k with a FSH and was pretty immaculate. And my intention was to replace it after a couple of years with some else s/h that I'd never be able to afford new.

I did at the time look at newish rep-cans, 911's and Range Rovers :roll:, but bought the Beemer and a new Triumph instead.

And luckily I didn't sign up to an expensive deal, as I got laid off 6 months later…

BTW, check your contract to see if any vehicle types are not allowed (this tends to apply to company car policies more so that CAs). Then it should be a case of you decide what you want and how to pay for it, i.e. finance, lease, outright purchase, etc.

Like I said I bought a 10 year old 535i (£2k), it had only done 80k with a FSH and was pretty immaculate. And my intention was to replace it after a couple of years with some else s/h that I'd never be able to afford new

.

does depend on the stipulations in your companys car policy …

ours states 4 doors , minimum engine of 1.8litre and less than 5 years old …..

ours states 4 doors , minimum engine of 1.8litre and less than 5 years old …..

yeah, the one I had was the same as above + no modified or ragtops etc.

Like I said I bought a 10 year old 535i (£2k), it had only done 80k with a FSH and was pretty immaculate. And my intention was to replace it after a couple of years with some else s/h that I'd never be able to afford new.

I did at the time look at newish rep-cans, 911's and Range Rovers :roll:, but bought the Beemer and a new Triumph instead.

Yes, you're quite right. I'm just getting a bit carried away looking at shiny new car's. I do like the idea of a new bike though. Maybe a new VFR1200. Hmmmm.

Did the same, handed back the new A3 TDI company car and got a 12 yr old A6 2.8 Quattro Avant with 175k on the clock. it's thisty, but I'm £300 approx per month better off as I do minimal milage.

Skoda Octavia vRS. Top VAT free deals on at the moment.

Bluemotion Passats are good for 65mpg apparently in real world driving, new ones are good for 109bhp which is just about driveable I suppose.

EDIT:

Right there's a 105bhp at 119g/km and a 140bhp at 129g/km. Nice 🙂

Right there's a 105bhp at 119g/km

That about describes my starter motor…

I've been in this situation and previously had a company car.

When I recieved an allowance I had the same options as you.
Get a new vehicle, get something on a persoanl lease or buy used.

I bought a low mileage used Volvo S60 – suited my needs as I'd be doing big miles. I'd have paid through the nose on any sort of lease/contract because of the mileage and I didn't want to spend all my allowance on a depreciating asset.

You'll be taxed on your allowance but your company should allow you to reclaim fuel or cover your fuel costs.
It'd be unusual for them to allow this at maximum HMRC levels of 40p per mile for the first 10,000 then 25p for every mile after that. These rates are usually for those who don't receive an allowance.

My only advice would be that you need to consider the amount you'd actually get after tax and all the servicing costs of the car, insurance & tax.

My motivation for getting a second hand car was to maximise the allowance I was getting (spend it on bike gear), I'd rather have it in my pocket then have a newer shiny car on the drive. I considered the car a tool of the job.

HTH

That about describes my starter motor…

And?

Okay then, any suggestions? Economical, comfortable, spacious (I'm 6'2" & I have two kids under 5years old (and associated paraphernalia))

Interesting pet name for the wife.

I've just got a seat leon ecotech as a company car, it's suprisingly light on the diesel and is a great car to drive. I believe it's road tax exempt to.

I receive an allowance,in lieu of a car,as I work exclusively in London,so use the train instead.
If you already receive a car allowance you can claim 30p a mile.
Which isn`t so great when your car is a gas guzzling mpv ,but then I very rarely ever need to use the car,and all my travelling expenses are paid.

You'll be taxed on your allowance but your company should allow you to reclaim fuel or cover your fuel costs.
It'd be unusual for them to allow this at maximum HMRC levels of 40p per mile for the first 10,000 then 25p for every mile after that. These rates are usually for those who don't receive an allowance.

Wrong

If you already receive a car allowance you can claim 30p a mile.

And wrong again.

A car allowance has nothing to do with the mileage allowance, its just cash.

And if your company doesn't pay up to the HMRC levels, then you can claim the tax back (at your top rate) on the difference. So if they pay 30ppm, then you can claim back 10ppm*tax rate (paying upto 5ppm for a 50%er).

Also any journey is business miles as long as it isn't your normal commuting journey, even one where you go via a site/customer on the way home/in.

Okay then, any suggestions? Economical, comfortable, spacious (I'm 6'2" & I have two kids under 5years old (and associated paraphernalia))

Well any decent hatchback but I am a big Golf fan since getting one a few years back. I have the Mk VI now and it's very economical. Can't see any real need for anything bigger.

Drac,

A Golf is, undoubtedly, a very nice car. However, given the amount of guff we tend to lug about, I really need an estate.

I think I might follow br's lead and start looking at older "quality" diesel estates. I'd quite like to try something nice instead of the recent years of something ordinary.

Cheers.