In article , Andrew Gabriel
writes
In article ,
Fredxx writes:
On 23/02/2012 22:43, fred wrote:

I think the tax on benefits in kind associated with company car
provision far outweigh any saving achieved, that was certainly the case
when I made choices on such matters.

Taxable benefits don't take into account the insurance premium for a
teenager, so might be a cost effective solution.

That was my thinking. ~15 years ago, I was working with lots of
young computer programmers (although mostly older than 25), and
anyone interested in a sporty car took the company car option,
because you would never be able to afford the insurance yourself.
OTOH, if you just wanted a Ford Fiesta, it was cheaper not to use
the company car option.

I think it was about 15yrs ago that the rules changed to base the hmrc
benefit on a proportion of the new value of the car you chose. I think
it was about a third of the new price each year (w/o any allowance for
depreciation) so if you had an 18k car you had a benefit loading of 6k
per year, every year that you had the benefit. Same thing if you bought
a 5yo car that cost 18k new, you got hit with a benefit of 6k no matter
what the age. For those who had a choice, coy cars went out of vogue in
short order.

I switched to personal ownership plus mileage.
--
fred
it's a ba-na-na . . . .