Company car vs claiming mileage

Company car vs claiming mileage

Didn't find your answer?

Apologies if I may have missed any posting on this.

Could you please help me on what is the bigger benefit - a company car or claiming mileage? How do you calculate company tax on emissions - so how do I know if a car is energy efficient.

Many thanks.

Replies (15)

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Portia profile image
By Portia Nina Levin
02nd May 2015 10:44

(No subject)

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Replying to Matrix:
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By MattG
16th Feb 2015 13:59

Hmm

Portia Nina Levin wrote:

I may have oversimplified.

I'm pretty sure you will find the answer is "No" except in leap years where the first Wednesday after epiphany is mauve.

 

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By User deleted
16th Feb 2015 14:02

Your apology ...

... is accepted.

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the sea otter
By memyself-eye
16th Feb 2015 14:17

emmissions tax

place a tissue over the exhaust pipe - if it turns black the mixture is too rich and emissions are too high = more tax. To correct, open the bonnet and turn the mixture nut on the base of the SU carburettor anti clockwise, one flat at a time. Use a half inch open ended spanner. Repeat if the car has two or more carburettors. Then re balance the carbs using a rubber tube at the air intake venture and one end in your ear.. Adjust until the 'hiss' on each carb is the same. Adjust the 'hiss' using the engine tickover screw located on the outside of the carb body - clockwise to increase engine speed antio clockwise to decrease. Use a flat bladed screwdriver.  Aim for 800/900 rpm at idle.

Then re apply tissue, count the number of soot spots and pay £1 to HMRC for each.

Hope I haven't over complicated.... 

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By User deleted
16th Feb 2015 14:21

Please try to be more helpful, memyself

What about those of us with fuel injectors?

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the sea otter
By memyself-eye
16th Feb 2015 14:29

Injectors?

Bash with a Birmingham screwdriver..:)

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By EMalunguza
16th Feb 2015 16:59

Thanks Basil

No offence at all - first time posting a question. Any help on how to pose a question for better response is appreciated.

I am an accountant advising an employer / employee - Private Limited director who is also an employee. Your response provides an idea on how about considering what is more tax efficient.

Many thanks

Liz

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Replying to tbk:
RLI
By lionofludesch
17th Feb 2015 15:23

No substitute

EMalunguza wrote:

No offence at all - first time posting a question. Any help on how to pose a question for better response is appreciated.

I am an accountant advising an employer / employee - Private Limited director who is also an employee. Your response provides an idea on how about considering what is more tax efficient.

Many thanks

Liz

Usually, there's no substitute for doing the sums. However, the sums will invariably be based on an estimate of future expenditure, it's never going to be accurate. Most of the time you'll find it's a close call anyway.

Generally, the higher the private mileage, the better the deal you get from a company car.  The higher the business mileage, the better the deal from owning your own.

The ownership of the company makes a difference.  An ordinary employee will just get a benefit.  A director who owns the company will get a benefit but he'll also have the costs of all the motoring costs through his company, less Corporation Tax relief.

Shrewd guess is as good as owt most of the time.

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By PracticePartner
16th Feb 2015 18:16

To oversimplify ....

New, low emissions petrol cars make sense as company cars, as among other things the benefit in kind is low, as are running costs.

Used cars are better bought cheaply and run privately, claiming the allowance for business mileage.

Both can be tax efficient in their own way. But the choice depends on many things, not least the company's ability to fund a car, and the user's taste.

Ask your client what sort of car they want, the mileage they'll cover in it (both business and private) and how much they can afford to spend and that will narrow it down a bit.

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the sea otter
By memyself-eye
16th Feb 2015 18:48

you can find this

on line everywhere without asking such a 'catch all' question - even the CO2 rating of every car - as an accountant surely it would be incumbent on you to do so, then maybe ask a more succinct question?

Or have I oversimplified? 

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Replying to atleastisoundknowledgable...:
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By PracticePartner
17th Feb 2015 12:05

I think they've got the point

memyself-eye wrote:

on line everywhere without asking such a 'catch all' question - even the CO2 rating of every car - as an accountant surely it would be incumbent on you to do so, then maybe ask a more succinct question?

Or have I oversimplified? 

This is the third pop you've had at the OP, and I think they've got the point.

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By EMalunguza
16th Feb 2015 20:03

Thanks PracticePartner

Very helpful.

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By davegibson00
17th Feb 2015 12:49

Google "company car calculator"

and have the make, model, emissions figure and manufacturers list price to hand.

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By Phi
17th Feb 2015 15:52

In 25 years I have 1 case where co car was best

I am often asked this question, and in the case of directors, I religiously do the maths for clients, and always work it on the basis of how much profit does the company need to make in order to run the co car and pay all taxes, or to pay the mileage and dividend to director to pay running costs.

I found my first client 2 weeks ago where the car was beneficial to have a co car AND fuel. His children live in the North and he lives in Cornwall, travelling 30,000 miles pa to see the children.

I dint think I would ever see the exception, but it shows it is worth getting a spreadsheet model set up and you can charge the client

 

 

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By EMalunguza
21st Feb 2015 10:00

Thanks

Thank you lionofludesch and Phi

Thanks everybody for your comments.

 

 

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