Which company car is best for you?
Businesses all over the country use company car schemes. Whether you have a car allowance or a choice of company car, it can be tricky knowing which is the best model for you.
Choosing a company car is an important decision and its one that isn’t always easy. There are a variety of different factors you will need to take into consideration before making that final decision.
It is a known fact that most sales jobs include either a car allowance or a company car scheme. After all, you need to get out in the field and connect with your clients. In order to do this, you’ll need some form of transportation.
Here at P3 Search we want to help you make an informed decision. Therefore we have compiled a guide on what factors to consider when choosing a company car.
What do I need to consider?
Some employers will also offer to pay fuel all fuel costs, although in some cases you will be asked to cover your own fuel costs and claim back any mileage.
The fuel economy is something you will need to take into consideration when selecting your company car. In most cases it will be your own responsibility to cover your fuel costs when you are not driving for business.
For example if you are covering a wide area and foresee a large amount of travelling, you may want to consider a diesel car as in this instance diesel will be a lot more economical.
How is company car tax calculated?
For many company car owners, the biggest downside is the tax you have to pay for what HMRC classes as the ‘benefit’ of having a car.
The ‘benefit’ is whats known as The benefit in kind . This is the rate that HMRC attaches to your car. This is a percentage of its P11D price, based on the cars CO2 emissions. The lower the car’s emissions, the lower the rate of BIK. As an example – a zero emission car has a rate of 7% and a car with high emissions will attract a rate of 37%.
The P11D value is made up of the car’s list price plus VAT, delivery and any options with a cost more than £100.
Company car tax bands 2017-2018
Figures for diesel cars with a 3% surcharge are shown in brackets below.
- 0-50g/km – 9% (10%)
- 51-75g/km – 13% (14%)
- 76-94g/km – 17% (20%)
- 95-99g/km – 18% (21%)
- 100-104g/km – 19% (22%)
- 105-109g/km – 20% (23%)
- 110-114g/km – 21% (24%)
- 115-119g/km – 22% (25%)
- 120-124g/km – 23% (26%)
- 125-129g/km – 24% (27%)
- 130-134g/km – 25% (28%)
- 135-139g/km – 26% (29%)
- 140-144g/km – 27% (30%)
- 145-149g/km – 28% (31%)
- 150-154g/km – 29% (32%)
- 155-159g/km – 30% (33%)
- 160-164g/km – 31% (34%)
- 165-169g/km – 32% (35%)
- 170-174g/km – 33% (36%)
- 175-179g/km – 34% (37%)
- 180-184g/km – 35% (37%)
- 185-189g/km – 36% (37%)
- 190g/km or more – 37% (37%)
Helpful Hints & Tips
Are you covered by the right insurance? Most insurers cover social, domestic and commuting from one place of work. However, if you travel to multiple locations for work, you need to declare this on your car insurance policy. For example, if you travel frequently to meet clients, you will need business insurance.
Check out the top 10 best company cars from carbuyer.co.uk
Having a company car is a great perk. So try not to be overwhelmed by the number of factors you need to consider when picking one out.