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Company car tax

After many years I have decided to give my company car up, I have always paid the fuel ,
Question is how much better off in my pay packet will I be taking into account the tax I pay ??

tufty7 Mon 04/02/08 23:07

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kags
Tue 05/02/08
16:29

What is your current tax code?

anniebird
Wed 06/02/08
10:29

Check your P11D which will show the taxable value of the vehicle you drive. You are taxed at 22% or 40% on this value depending on whether you are taxed at standard rate or higher rate. Multiply the taxable value by the rate of tax and you will get the tax saving per annum.

tufty7
Thurs 07/02/08
21:10

Question Author

My tax code is 268L and it states that the benefit is worth £2870 per annum, is it as simple as dividing that amount by 12 and getting an amount ?? or is that too simplistic??

Thank you in anticipation .....

factor30
Fri 08/02/08
08:22

Yes- not just simplistic, but quite a bit out. If the benefit is worth £2870 and you pay tax at 22% then your tax bill will ccome down by 22% of £2870 which i think is £631 a year. That's about £53 a month.
Will you be able to negotiate a higher salary to cover the savings your employer makes?

tufty7
Fri 08/02/08
22:40

Question Author

Thanks for the answer, I have already got my old car at a good price and have screwed a little more out of them , I just don't do any mileage and Yes i know its a perk and you get a new one every 3 years but I need to become less reliant on my employers so If I wanted to move job I could do it easier if you know what I mean ....

Thanks

tufty7
Thurs 21/02/08
23:21

Question Author

got my tax code changed now from 268L to 555L, I await to see what difference that it is in real cash terms ...thanks for your answers you fine people....

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