retired_thornebird

I've just got a job where i have the option of a Company Car or a cash allowance but i just can seem to get to grips with the tax implications, especially in regard to mileage.

Anyone recently had to make the same choice and can they explain their thought process??

Thanks.

mattsaunders

almost always better to take a car if there's one on offer

retired_reptilian72

Umm no its not, take the cash always.

retired_thornebird

This is the problem i'm facing, every other person i talk to thinks differently!!

On a like for like basis (BMW 3 Series) the cash option doesn't appear to work and it seems i'm better off with the Company Car, however i'm not sure about the mileage issue (approx 15,000 a year).

The cash allowance is £6800 a year but by the time it gets taxed up (at 40%) i see £360 a Month of that and it's almost impossible to finance a like for like car??

Why do you say take the cash Jono??

retired_imran_ryd

I took the car in my situation.

Basically I got a brand new decent car, that I could not afford ordinarily. The tax is high, but I don't pay for any fuel and if anything goes wrong with the car, it's not my problem.

retired_thornebird

I think that's the same situation with me - i can afford it but the Company Car comes with all servicing, tyre replacement, windscreen replacement, insurance for me and my partner and they even pay for the excess on any accidents i may have.

Just seems weird to give up £7k a year?!?!

retired_el_chanclas

You already have a (decent) car? Take the money.

You don't have a car. Or your car is crap? Take the car.

retired_kanorge

what line of work are you in? If the mileage is okay for you and you have not already got a great car then take the car.