I’m looking at possibly getting a company car and have been reading the information supplied to me by my employer.

The company car benefit in kind charge which is then subject to income tax is calculated on the manufacturer’s list price of the company car and a % charge determined by the exhaust emissions of each specific car.

I’m looking at an Audi A1 Sportback 1.4 TFSi. Currently it comes with a 1.4 122ps 126 g/km engine. However there is supposed to be a 1.4 136ps 109 g/km engine coming out soon.

I have already been given a quotation of how much the 122ps car will cost me per month.

I’m not actually bothered about the extra power of the 136ps engine, but I wondered if the cleaner 109 g/km engine might mean that the cost of the car is cheaper to me per month?

How does it all work?

Ta

Yes, cleaner cars are cheaper.

Go to the Inland Revenue and there is a cost calculator.

I just swapped from a Mondeo to a Focus, same list price, and cut my tax by 50% 🙂

Hi, if you are new to this I would start here —-> http://comcar.co.uk/newcar/companycar/taxcalc/g1select.cfm

Just load up your car and it’ll tell you how much you pay. Simple.

The tax is a calculation of list price of the vehicle and the CO2 emissions in bands. So yes, in all likelihood the more powerful car may be cheaper tax, or at least the same tax if the cars a bit more expensive. If you see what I mean.

Quite a handy calculator on Comcar.com

Beaten to it by a bawhair!

Thanks for the info.

Unfortunately the engine isnt listed any where yet so can not do the calculations. It doesnt look like its a simple calc to do to work out if it woud be any cheaper per month.

Its not a strightforward agreement either. Its basically allowing me as an employer of the NHS to lease a company car by making a salary sacrifice to pay for the lease cost.

I’ve currently been quoted £270 per month which is way less than I coud get a personal lease for the same car, especially when adding in Insurance, Servicing etc etc.

I guess there is no easy way to calculate what the 109 g/km car would cost…. or does any one know of tables that have the % for this?

If its salary sacrifice the level of the benefit in kind (your tax) will be decided on if your employer ‘agreed’ the scheme before the 27th July 2011. New VAT rules come into force on the 1st Jan 2012. You really need to speak to your scheme co-ordinator/fleet manager to find out. To keep it simple the higher your co2 and the list price of the car = more tax. There wont be a great difference between the two cars quoted in £’s.

It’s straightforward enough, the CO2 levels are in bands, then it’s a simple calc against value.

It’s straightforward enough, the CO2 levels are in bands, then it’s a simple calc against value.

Well thats what I hoped. So what % is 109 g/km?

Then ok its a simple case of % of RRP = tax? But is that the total tax paid for the car per year? ie how would I calcultate that in to my monthly cost?

Ta

I phoned the fleet team and they couldnt help 😯

Have you tried the Audi website?

http://www.audi.co.uk/fleet-sales/tax-calculator.html

Unfortunately the engine isnt listed any where yet so can not do the calculations. It doesnt look like its a simple calc to do to work out if it woud be any cheaper per month.

Its not a strightforward agreement either. Its basically allowing me as an employer of the NHS to lease a company car by making a salary sacrifice to pay for the lease cost.

I’ve currently been quoted £270 per month which is way less than I coud get a personal lease for the same car, especially when adding in Insurance, Servicing etc etc.

I guess there is no easy way to calculate what the 109 g/km car would cost…. or does any one know of tables that have the % for this?

It is a simple calculation. Click onto the HMRC website and enter the details. You don’t need to know anything about the car apart from the list price and CO2 levels. I’ve had a quick play and without knowing the list price of the A1, I entered £15,000 and got a difference of about £10 per month between 126g/km and 109g/km (Petrol).

However you mention salary sacrifice. If the £270 per month, is the amount of your salary sacrifice, you probably won’t have to pay any additional income tax as your contribution will reduce your BIK liability.

The calculator also lets you enter your contribution.

http://cccfcalculator.hmrc.gov.uk/CCF0.aspx

Depends on how your car lease works with your employer though. Mine is partly used for work, and paid via salary sacrifice, such that the benefit in kind tax is pretty minimal, so the co2 doesn’t actually make a lot of difference (edit: as previous post).

edit 2 – just noticed that your looking at the nhs scheme, which I’m on, so it’ll be the same/similar.

Good choice of engine though – have the same one in my golf: nice and perky and 45mpg average 🙂

The greener engine may cost your employer less to lease as it may have a better residual value at the end of the lease. Greener cars hold their value better and cars that hold their value better are better cars to lease as the lease company can offset value to the end of the lease which reduces the payments, hence why their is lots more premium german company cars now than their ever has been Vs Mondeo’s and Insignia’s etc…..

I’ve recently had the mother of all shocks when I got paid. Some pillock at HMRC decided to put the BIK of my £32,000 BMW company car as it’s full value and NOT the RRP divided by the 119 Co2’s banding (around 5800) and then put fuel benefit on top.

The resulting damage was me paying about £700 extra tax on top of the £1100 I already pay each month. So I called them up and they owned up and changed it and said that i’d get a refund and new tax code immediately.

I’m thinking I may ‘fine’ them like they fine their customers for being late with their paperwork,,,

I’ve currently been quoted £270 per month which is way less than I coud get a personal lease for the same car, especially when adding in Insurance, Servicing etc etc.

But you are comparing new with new, when in fact you could compare new with used, and also if you take a company car it usually means that you limit the business miles to just fuel whereas if you run your own car you should get the full 45ppm (or whatever the NHS pays plus tax top-up).

Try looking at something far cheaper, and the cost will be far cheaper – FWIW I use to be able to have a BMW 5 series, but took a basic Vectra, and was circa £400 per month better off.