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Company cars (Tax)


b6bloke
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I have just got myself a new job and am being a given a company car, now I dont want to just jump in and get screwed on tax so some advice is needed.

The company car would be a 1.6 TDI Blue motion Passat SE and I am wondering what tax I would pay on that? Its a bit confusing to a newbie in the company car world but I want an automatic but not sure if it is much more tax? I think the auto only comes in a 2 litre.

Cheers

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I got a VW Golf 1.6 Bluemotion as a company car currently. I pay about £60-90 a month in tax.

I too have just got myself a job on a much better basic than my old job (6k more) but I have to go and buy a car (budget of around 10k), insure it and pay for anything that goes wrong on it. Needless to say that I will be worse off that I am in my current job for the next 6 months, but unfortunately they don't do company cars.

If I were you, i'd snap their hand off.

Plus with the Bluemotion, you should be getting 650/750 miles out of a tank (in my experience anyway) and you'll make a bit of money on the petrol.

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Comes with a fuel card too so even more tax I guess, not complaining though as my current job has no car and spending £80 a week on fuel plus insurance, tax etc etc and it pays 5 grand more. The job is based from home as mainly driving around loads of different waste depots.

The tax on the 1.6 Blue Motion seems to be at 16% which works out at about £680 which seems good, the 2.L auto works out at 17% at £760

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B6.

The 1.6 TDi is much better (imo) than the 2.0l.

Firstly, you get better MPG out of it and it cruises at 70mph.

secondly, if you're going to be driving on your own then the extra large 2.0l engine will be wasted and less fuel efficient.

That's my opinion, but cost wise the 1.6l is much cheaper tax wise and more economical when driving.

Just something to think about. :)

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I you are a higher rate tax payer the tax will be much higher as you will pay tax on the benefit in kind at 40%.

Including the benefit you would have to be earning circa £42,500 per annum for this to be the case.

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The best thing about having a company car is if it goes wrong it doesn't come out of your pocket. I think with mine I actually lose money, because I don't do the miles to use enough fuel.

There is a good guide to company cars in this months What Car?

I can let you have a pdf copy if you want.

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