09-25-2015, 03:59 PM | #1 |
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Company Car calc
Looking for some of advise from you knowledgable lot.
I have always had a car allowance which is easy to work out and plenty of online calculators that allow you to put in your salary and allowances to work our your take home pay. What I am struggling with is how do I calculate a company car take home salary? For example say based on my current cars details? 118d M Sport Auto 64 plate. Totals on P11D £5,207.00 So what does this mean I would have deducted from my montly salary? based on no additonal contributions from me and only fuel for buiness mileage. CONFUSED! |
09-25-2015, 04:15 PM | #2 |
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£5207 is the taxable benefit attributed to the car. This is taken from list price x the % relevant to the CO2 output from your car.
You will therefore be taxed equivalent to if you had earned an additional £5207 of salary i.e. £5207 x your marginal rate of tax (including national insurance) in %. If you are a 40% tax payer (and subject to the additional 1% of NI) this would cost you £5207 x 41% = £2135 / 12 = £178 per month |
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09-26-2015, 02:47 AM | #4 | |
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Ah magic thanks. So I can apply this sum to my calculations but basically I dedcut £178 from my take home pay as my monthly payment equivalent for the car. Perfecto! thanks. |
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09-26-2015, 03:03 AM | #6 |
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Oops i mean www.comcar.co.uk
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09-26-2015, 03:03 AM | #7 |
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Take it away from your pretax income though - it is treated as a deduction from your gross rather than net income
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