Co2 & Economy Figures changed

[fredgroves]

You'll also get a lower tax code the following year so you're cheap lease car actually doesn't become that cheap overall.

That's how they apply the BIK taxation... its not a fiddle, its just how the tax is collected. For anyone on PAYE the tax code is the only way extra tax can be collected (or in work benefits paid)

[itavaltalainen]

Still the GTD is very low in CO2 - at least on paper. Probably will get one as an estate as my next company car - the Subaru Levorg would be a nice car but with CO2 of 164 it is simply not feasible as BIK with near 30k assumed as P11D list price (same as the Subaru diesels where they are much too honest).

BIK tax is just theft anyway, not taking into account that most miles you do in it is for business and not private (and assuming list price throughout hire period though it'll be worth less than a week old salad when it goes back with well over 100k on the clock at 3 yrs old).

[fredgroves]

Looks like they haven't touched the figures on the GTD estate...yet.

And before you decide if a 115g/km oil burner is for you for the next 3 years, I'd take a look at the projected BIK rates - they are published out to 2020.

By the time you get to 2020 you'll need to be using some sort of PHEV if you aren't going to be bleeding money from your eyes just so you can drive a mid sized oil burner.

[fredgroves]

Company cars are only tax efficient if you do high mileage really. The sort of scenario where the private lease company's just laugh at you, like 20k and upwards...

Nobody in my company really gets a company car allowance aside  from a few senior managers who are on the road a lot but they offer a lease scheme for fully maintained and insured cars whereby you pay less deductions from pay as it reduces your pre tax pay or pre stamp pay or something. I don't know anyone who's ever taken it up but I'm sure a Fiesta or something might be attractive to those wanting a known automotive monthly budget in the same way people pay over the odds on phone contracts. Convenience.

It DOES make sense if you are able to avoid paying your own excess mileage charges (the company paying) and you do a load of miles - doesn't have to be business miles, just someone who actually uses a car.

It makes less sense if you do a handful of miles a year...

[Exonian]

Company cars are only tax efficient if you do high mileage really. The sort of scenario where the private lease company's just laugh at you, like 20k and upwards...

Nobody in my company really gets a company car allowance aside  from a few senior managers who are on the road a lot but they offer a lease scheme for fully maintained and insured cars whereby you pay less deductions from pay as it reduces your pre tax pay or pre stamp pay or something. I don't know anyone who's ever taken it up but I'm sure a Fiesta or something might be attractive to those wanting a known automotive monthly budget in the same way people pay over the odds on phone contracts. Convenience.

It DOES make sense if you are able to avoid paying your own excess mileage charges (the company paying) and you do a load of miles - doesn't have to be business miles, just someone who actually uses a car.

It makes less sense if you do a handful of miles a year...

I looked into it a bit more and it's not strictly a company car scheme. They offered one of those a few years ago but the proviso was it had to be a really "low carbon" car to offset some of our commercial vehicles so I'll assume an attempt at getting business tax down? I didn't really pay any attention at the time. I think it was stillborn anyway.
This seems more like a general staff benefit thing that any staff can apply for, an expensive lease but the money is taken out of pre tax income so you pay fractionally less tax and stamp. Company car taxes don't apply. No different really to those other staff perk schemes that use loopholes such as "cycle to work"

[fredgroves]

I looked into it a bit more and it's not strictly a company car scheme. They offered one of those a few years ago but the proviso was it had to be a really "low carbon" car to offset some of our commercial vehicles so I'll assume an attempt at getting business tax down? I didn't really pay any attention at the time. I think it was stillborn anyway.
This seems more like a general staff benefit thing that any staff can apply for, an expensive lease but the money is taken out of pre tax income so you pay fractionally less tax and stamp. Company car taxes don't apply. No different really to those other staff perk schemes that use loopholes such as "cycle to work"

No, its a salary sacrifice scheme if the payment is taken out from gross pay.

All salary sacrifice car schemes attract BIK taxation - or should do.

Loads of details about why you'd bother, what's in it for the company and the employees, here:

http://www.fleetnews.co.uk/fleet-management/salary-sacrifice/10-things-to-know-salary-sacrifice

[Websta24]

Company cars are only tax efficient if you do high mileage really. The sort of scenario where the private lease company's just laugh at you, like 20k and upwards...

I disagree with this. I've got a company car and my mileage has decreased massively. I now do about 10k a year.

a 15 plate GTD with full maintenance and tyres costs me the equivalent of £97 a month....could i buy/lease, tax, insure and run a car for that?! Hell no!

[fredgroves]

97 quid! I have no idea how on earth your company can let you have a GTD for that!

That's a fraction of what I pay!

[Websta24]

97 quid! I have no idea how on earth your company can let you have a GTD for that!

That's a fraction of what I pay!

Perhaps we are talking about differing schemes. That £97 is what it costs me in tax.

Under the terms of my contract, the company lease me a car and it costs them about £350 per month and then i am taxed on the benefit. I just have to pay for fuel (unless its business mileage and then i claim it back)

For me its a great deal. I used to do 35k per year so i had the car, then i moved position and its a lot more office based but the car remained in my contract. For that cost i would be mad to have it removed!

[Websta24]

On another note, it seems the government haven't changed there Co2 figures as they are still showing 109

http://carfueldata.direct.gov.uk/search-new-or-used-cars.aspx