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36 Posts
Morning everyone, first post and not yet an EV owner but I think I have made the decision purely from a company car tax point of view. However, I would like to get opinions and advice from similar company car drivers.
So I have driven company cars for about twelve years now and currently driving a Passat Estate 2.0 TD. As a 20% taxpayer, this costs me approx £145 a month. I am very close to becoming a 40% and when this does, the monthly payments will be £300. Now having two kids and child benefit, and almost being a 'higher earner' as a result of my total package (salary plus BIK for the car), then affects child benefit. I think it's time I act to reduce my overall salary package.
The company has a few hybrids where the BIK is around 10 to 16% but I am in a position to have a charger (at my cost) installed in the garage where I park in order to get this BIK down to 1/2% as it currently is for EV's. The only thing that makes me a touch nervous is the electricity bill. My company car is due for replacement in November, so I have to make my choice in July.
My employer will pay me 4p a mile for my business miles, which I understand is a standard rate as per HMRC. I do approx 350 business miles a week, 5 days a week. The company offers the Nero or the equivalent Hyaundi brand which I don't think is quite as good as the Kia, so I'm settled on the Kia.
I have always been someone who likes to get lots of information to make an informed choice. What's your advice and tips for this decision and am I right in my assumptions.
Regards
Chris
So I have driven company cars for about twelve years now and currently driving a Passat Estate 2.0 TD. As a 20% taxpayer, this costs me approx £145 a month. I am very close to becoming a 40% and when this does, the monthly payments will be £300. Now having two kids and child benefit, and almost being a 'higher earner' as a result of my total package (salary plus BIK for the car), then affects child benefit. I think it's time I act to reduce my overall salary package.
The company has a few hybrids where the BIK is around 10 to 16% but I am in a position to have a charger (at my cost) installed in the garage where I park in order to get this BIK down to 1/2% as it currently is for EV's. The only thing that makes me a touch nervous is the electricity bill. My company car is due for replacement in November, so I have to make my choice in July.
My employer will pay me 4p a mile for my business miles, which I understand is a standard rate as per HMRC. I do approx 350 business miles a week, 5 days a week. The company offers the Nero or the equivalent Hyaundi brand which I don't think is quite as good as the Kia, so I'm settled on the Kia.
I have always been someone who likes to get lots of information to make an informed choice. What's your advice and tips for this decision and am I right in my assumptions.
Regards
Chris