« Reply #14 on: 10 March 2016, 05:22 »
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"
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