Another question about car tax

[Mailman]

Guys,

I have the opportunity to pick up a company car that can be used for my personal use.

Now, there is a charge I pay for the "privilidge" of "owning" this car for a set number of years.

So the big question is, does the amount I pay every month go towards reducing the company car benefit in kind tax? If so does it make any difference as to whether the amount I pay is taken from the net amount (before tax is deducted from my pay)?

Any help here would be most appreciated.

Regards

Mailman

[tim123]

Guys,

I have the opportunity to pick up a company car that can be used for my personal use.

Now, there is a charge I pay for the "privilidge" of "owning" this car for a set number of years.

So the big question is, does the amount I pay every month go towards reducing the company car benefit in kind tax?

Yes, go here to see how much:

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

(IIRC there used to be a scam that making a small payment meant that no tax was payable, but they closed that loophole)

If so does it make any difference as to whether the amount I pay is taken from the net amount (before tax is deducted from my pay)?

Any help here would be most appreciated.

Regards

Mailman

The payment should be from the taxed pay. Otherwise that income wouldn't be taxed at all would it!

tim

[Mailman]

Been there, the calculator doesnt have the 2006/2007 tax year in it yet!

Mailman