Going to work on the bike

[timwilky]

My employers will pay £4,500 for you to take cash in lieu of a car. They then expect you to claim business mileage at the same rate as they would pay for co car use £0.10/mile.


So 40% of the 4500 goes to the tax man leaving me with. £2,700 a year to play with. remove
£700 for insurance
£900 for maintenance
£150 for tax

means I then get about £950 /year to purchase a car.

then I can claim back from the tax man the difference between their rates and the companies.

So assume I do 12000 co miles
10000*(0.4-0.1) = £3000
2000*(.25-.1) = £300


So in total it would be £4250 I would have per year to own and run a car.
Factor in depreciation and I still think I am better off as I have not included £500 for a set of tyres each year. The fact it is going to need at least 1/2 major jobs. May be, if I already owned a car it might break out in my favor.


Doing the sums on a bike the biggest issue is the miserable £0.25p you can claim from the tax man. So if they are paying you £0.35/mile then you will be paying tax on that. Depreciation on the bike will put it through the floor with the extra mileage. and my biggest issue would be that I use a bike as stress relief/relaxation. They would take that element from you. What about those days it it lashing down, snowing/freezing. have fun getting in/out of waterproofs, soggy all day, carrying laptops/notes etc. Sod it use a car for work. (Yup I know I am a fair weather type)

So I think your employers are taking the P with their offer

Originally Posted by Lozzo

1000 - 1200 a year?

Tell them to stuff it, you'd lose that in depreciation on a bike in 6 months when you start racking the miles up. I'd be looking at enough to buy me a new SV every year if it was being used almost exclusively for them.

What he said. I get £3700 a year for mine, along with 24p a mile. Sounds a lot, but it's still a huge saving for them over providing me with a company car.

I would keep the Co car, in the grip of Winter, the risks you are taking (and being worse off by the sounds of it) without a car increase massively. If you had an off and found yourself off of work, do you get full pay?

[pmapp]

Okie dokes.

Thanks all for the info yet again. I've told 'em this morning I'll be sticking with the company car.

Last night when it was put to me it sounded like a decent thing, but tax/money etc ain't one of my strongest points So all the comments on here have made sense and swayed my decision.

I know I'm on a good thing with the car (Nissan Navara + all toys), as it's commercial it only costs me £660 a year tax + 10p per provate mile. Trying to get a van out of 'em at the mo' for use with the bikes for trackdays etc.

Thankyou to the all knowing org

[Stu]

Originally Posted by timwilky

£700 for insurance

You old fart it can't be that much

£900 for maintenance
£150 for tax

means I then get about £950 /year to purchase a car.

then I can claim back from the tax man the difference between their rates and the companies.

So assume I do 12000 co miles
10000*(0.4-0.1) = £3000*40% tax = £1200 (you can claim the tax, taxman doesn't actually pay you mileage! )
2000*(.25-.1) = £300*40% tax = £120


So in total it would be £4250, No £2,270 I would have per year to own and run a car.
Factor in depreciation and I still think I am better off as I have not included £500 for a set of tyres each year. The fact it is going to need at least 1/2 major jobs. May be, if I already owned a car it might break out in my favor.


Doing the sums on a bike the biggest issue is the miserable £0.25p you can claim from the tax man. So if they are paying you £0.35/mile then you will be paying tax on that. Depreciation on the bike will put it through the floor with the extra mileage. and my biggest issue would be that I use a bike as stress relief/relaxation. They would take that element from you. What about those days it it lashing down, snowing/freezing. have fun getting in/out of waterproofs, soggy all day, carrying laptops/notes etc. Sod it use a car for work. (Yup I know I am a fair weather type)

So I think your employers are taking the P with their offer

I've just been looking at a new job with the offer of a car or allowance instead. I'd use either of the bikes so would opt for the allowance. This is worth £6.5k a year so your offer sounds more like a kick in the teeth.

[timwilky]

Originally Posted by Stu

You old fart it can't be that much

What, I would have to start a business class insurance policy as I would have zero no claims.

I never realised that I would only get the inland revenue rates as a taxable allowance. That is terrible. and makes the economics of running a car/claiming a taxable allowance uneconomic at the now lousy rate my co gives.

my car allowance goes though PAYE, and my mileage is submitted monthly under expenses,

They do not care if I have a car or a bike providing i get here in one peice looking reasonable,

Days i have important meeting i use the car.

I did buy an expensive car and it didnt work out.. I was getting £270 car alowance after tax and i was spending £600 a month on the running and fueling the car..

I have now aquired a cheap diesel escort that is smart enuff to pass and ive bought the tuono too.

Now iv managed it that the car allowance pays for the insurance on the car.. and the bike in its entirety.

Comapany cars are nice, but i like the charm of the old motors too... lols oh yeah and i got a new bike out of it...